The U.S. Postal Service today announced its financial results for the 2021 third quarter ended June 30, reporting a net loss of approximately $3.0 billion, compared to a net loss of approximately $2.2 billion for the same quarter last year. Excluding the combined effects of non-cash workers’ compensation adjustments due to fluctuations in discount rates and other actuarial revaluations, the loss for the quarter would have been approximately $2.3 billion, compared to a loss of approximately $2.4 billion for the same period last year.
Service performance continued to improve in the quarter, with the Postal Service reporting its strongest quarterly service performance for all First-Class, Marketing and Periodical mail categories since the same quarter last year. The Postal Service is making network infrastructure investments, such as the installation of new package processing equipment and short-term rentals of processing and logistics assets, to meet customers’ evolving needs ahead of the 2021 holiday season.
“Our improved service performance during the quarter is largely the result of significant organizational focus on implementing core elements of our Delivering for America plan,” said Postmaster General and Chief Executive Officer Louis DeJoy. “We are transitioning from an outdated network and operational posture that was ill equipped to handle the effects of the pandemic on the mix of mail and packages we process – and we expect this volume shift to continue into the foreseeable future. As we establish our new network design and deploy our operating initiatives, we will operate with much greater efficiency and precision, become financially self-sustaining, and deliver greater value to the American public we serve.”
The Postal Service reported operating revenue of approximately $18.5 billion for the third quarter of fiscal 2021, an increase of $845 million, or 4.8 percent, compared to the same quarter last year.
Marketing Mail revenue increased by approximately $1.0 billion, or 42.2 percent, on volume growth of approximately 4.3 billion pieces, or 38.6 percent. Marketing Mail experienced steep volume declines at the onset of the pandemic last year, but has been rebounding as the economy continues to recover. Marketing Mail has generally proven to be a resilient marketing channel, and as the economy has shown a sharp recovery, its value to U.S. businesses remains strong due to healthy customer returns on investment and better data and technology integration.
First-Class Mail revenue increased by $54 million, or 1.0 percent, on volume growth of 130 million pieces, or 1.1 percent, as the economy continues to recover. Despite the slight increases in the current quarter, First Class Mail volumes remain lower than pre-pandemic levels and we expect continued secular declines in this product.
Shipping and Packages revenue decreased by $646 million, or 7.8 percent, on a volume decline of 300 million pieces, or 14.1 percent, compared to the same quarter last year, as a pandemic surge in demand for package deliveries began to abate. Despite these decreases in the current quarter, Shipping and Packages volumes remain higher than pre-pandemic levels. We believe consumer behavior has evolved during the pandemic and our Shipping and Packages volumes are not expected to return to pre-pandemic levels, as the nation has increasingly relied on the safety and convenience of e-commerce. However, competition in the overall market has increased as certain major customers have returned to diverting their volume from our network and aggressively pricing their products and services to fill their networks and grow package density.
https://about.usps.com/newsroom/national-releases/2021/0806-usps-reports-third-quarter-fiscal-2021-results.htm