Citing the ongoing recession and an “unprecedented” drop in mail volume, the U.S. Postal Service just announced a $1.9 billion loss for its Q2, and said it likely expects to end the fiscal year Sept. 30 with a projected deficit of more than $1.5 billion. Mail volume for Q2 totaled 43.8 billion pieces, a drop of 7.5 billion pieces, or 14.7% compared to a year ago. The year-to-date net loss from operations is a whopping $2.3 billion, compared to a loss of $35 million in the same period last year.
The USPS has tried to incentivize mail volume, including a “summer sale” for Standard Mail, which will provide eligible mailers with a rebate of 30% for mail volume that is over a designated threshold. And it's anticipating savings from realigning carrier routes, halting construction of new postal facilities, freezing USPS officer and executive salaries at 2008 levels and other measures.
Postmaster General John E. Potter previously had mentioned to Congress that the USPS could eliminate Tuesday or Saturday service, especially in the summer months when volume tends to be less. Such a move would require action by the House and Senate Appropriations Committees, and action is not imminent. But I expect that to change before the year is over.
What do you think?