Here's How The Post Office Lost $5 Billion In 2011 (And Will Lose Almost Three Times That Next Year)

mail truck

Photo: Morristechnology.com

The United States Postal Service lost $5.1 billion in the fiscal year that ended in October, and is on track to lose $14.1 billion this year.Total 2011 mail volume declined by 3 billion pieces, or 1.7 per cent, from 2010, according to a report from postal service CFO Joe Corbett to the agency’s board of governors.

Other 2011 financial results include:

  • Operating revenue of $65.7 billion compared to $67.1 billion the year before
  • Operating expenses of $70.6 billion compared to $75.4 in 2010
  • The retiree health benefit pre-funding payment postponed by Congress and the President is now due by Nov. 18. Unless additional legislation is enacted, the Postal Service will be forced to default on this payment.

The 2011 loss was actually $10.6 billion when you include the deferred retiree benefits:

First Class mail revenue is down because more people are using email for letters and bills.

Fuel prices and benefits brought expenses up slightly in 2011:

The Post Office cut workhours in an attempt to wring out as much waste as possible:

And total productivity increased

But that did little to stem the financial problems:

For 2012, the outlook is much, much worse:

The economy isn't growing fast enough to grow mail volume:

The Post Office will have to pay the $5.5 billion for retirees deferred from 2011, in addition to benefits for 2012 — bringing total projected losses to $14.1 billion:

Packages are the only class of mail expected to grow – as more people shop online:

The Post Office wants to keep cutting employees, saving $2.5 billion in 2012:

But unless Congress acts — and fast — the Post Office may not make it through the year

Now read about how lawmakers make big bucks while in public office:

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