Financial losses continue to plague the Postal Service as its reported net loss for the 2024 fiscal year grew again in February. Unlike in recent months, the Postal Service reported increases in market-dominant product volumes, which grew by just under 300 million pieces. In large part, volume increases are explained by the leap year, with February having one more delivery and retail day than in 2023. Competitive product volumes increased by 3.3 percent. Volume growth, combined with a January rate increase helped boost total operating revenue by six percent for the month, though revenues lagged planned amounts by one percent.
Monthly revenues for all the Postal Service’s Market Dominant products increased, again thanks to a rate increase and an additional calendar day. For the month of February, the Postal Service reported a net loss of $377 million, bringing the year-to-date total to $2.75 billion. That February result represents a slight improvement relative to plan but exceeds last year’s net loss by $239 million.
Though volume increased slightly for the month, the Postal Service continues to struggle managing labor utilization as increases in total workhours outpaced increases in workload. Though total volume increased 2.9 percent relative to SPLY, the Postal Service used four million additional workhours compared with 2023. Controllable salaries and benefits expenses increased by almost six percent thanks to wage and workhour increases. Perhaps as a result of the additional volume, the Postal Service’s recent progress in reducing non-personnel expenses has slowed with total non-personnel costs flat compared with last year and 1.1 percent above planned levels.
Transportation costs were down by six percent relative to 2023, but those reductions were offset by significant increases in other costs such as utilities, information technology, and miscellaneous. Further, USPS reductions in purchased transportation expenses are due in part to insourcing initiatives that may partly explain increases in some personnel expenses.
-PostCom Bulletin / USPS
