USPS Lifts Q3 Revenue to $19.9 Billion as 8% Parcel Surcharge Cuts Loss 18.2%
Updated
Updated · FreightWaves · Aug 8
USPS Lifts Q3 Revenue to $19.9 Billion as 8% Parcel Surcharge Cuts Loss 18.2%
3 articles · Updated · FreightWaves · Aug 8
Summary
$19.9 billion in fiscal third-quarter revenue helped USPS narrow its net loss by $584 million to $2.5 billion, with management pointing to April parcel surcharges and higher stamp prices.
The 8% parcel fee lifted parcel shipping revenue 7.7% even as parcel volume fell 3.4%, while overall revenue rose 6.1% despite declines in mail and package volumes.
Operating expenses still increased 2% on higher retiree health payments, wages and fuel costs since the Iran war, leaving a controllable loss of $1.04 billion.
David Steiner said regulators' limit of one price increase a year cost USPS $700 million in revenue and renewed calls for Congress to ease pension mandates and fund temporary support.
USPS said cash-conservation steps should sustain operations through at least August 2027, but Steiner warned it could face a liquidity cliff in 2031 without reforms, higher prices or service cuts.