US Postal Service Faces $9.5 Billion Loss, Warns of Financial Instability

The USPS highlights the need for continued cost-cutting measures to avoid a potential government bailout.

The USPS reported a $9.5 billion net loss for the fiscal year ending September 30, 2024, marking a $3 billion increase from the previous year.
Despite revenue rising by 1.7% to $79.5 billion, the agency's financial challenges persist due to increased non-cash workers' compensation expenses.
Postmaster General Louis DeJoy emphasized the necessity of ongoing cost reductions as part of a 10-year restructuring plan aimed at financial sustainability.
First-class mail volume has significantly decreased, with a 3.6% drop year-over-year, contributing to ongoing revenue challenges.
The USPS has raised postage rates twice in 2024, yet continues to face criticism over its focus on package delivery over traditional mail services.