Despite modest growth in operating revenue, the Postal Service posted an operating loss of $1.15 billion for the month of November 2023. Consistent with recent trends, the Postal Service reported significant declines in market-dominant product volumes, though those declines were partially offset by growth in the Postal Service’s package business. Competitive product volumes increased by 32 million pieces, but overall
postal volumes were down almost eight percent for the month and nearly twelve percent year-to-date.
For the month of November, the Postal Service posted a net loss of $1.11 billion, driven largely by stubbornly persistent growth in personnel expenses. November’s loss exceeds last year’s total by $120 million and exceeds the planned operating loss by $625 million. Total revenue fell slightly short of planned levels, but grew by 1.3 percent relative to last year thanks to two rate increases in the last twelve months.
Market Dominant product volumes declined substantially relative to SPLY. Marketing Mail volume fell by 11.1 percent for the month and First-Class Mail volume was off 5.2 percent compared to the previous year. The Postal Service’s package business fared better; competitive product volumes were up by 5.6 percent with revenues increasing by 3.9 percent.
Though volume declined significantly during the month, the Postal Service’s continues to struggle with labor utilization as total workhour reductions failed to keep pace with losses in workload. Though total workhours were reduced slightly relative to SPLY, controllable compensation and benefits expenses increased by 3.8 percent due to wage increases and cost of living adjustments.
PostCom Bulletin
