Postal Service losses double from last year
The U.S. Postal Service took a revenue hit this year.
Total net loss was $8.8 billion in 2019, the company announced in a press release Thursday. That’s an increase of $4.9 billion since 2018. About $3.4 billion of that loss was due to an increase in workers' compensation costs.
For its part, the U.S. Postal Service said operating expenses were up, hitting nearly $80 billion, an increase of $5.4 billion since last year.
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The U.S. Postal Service did see some increases in revenue, however. Operating revenue ticked up $71 billion for fiscal 2019, an increase of $514 million versus last year. That was due to price increases and growth of the shipping and sackages business, where revenues rose by $1.3 billion and offset declines in first-class and marketing mail.
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The company also reduced its debt by $2.2 billion, finishing the year with $11 billion in outstanding debt. Postmaster General and Chief Executive Officer Megan J. Brennan said there’s still room for improvement: “Revenue growth in our package business will never be enough to offset imbalances in the Postal Service's business model, which must be addressed through legislative and regulatory reforms to secure a sustainable future.”