USPS revenues slip for first quarter of 2020 fiscal year
Washington Postal Scene by Bill McAllister
Postal revenues slipped slightly in the quarter ending Dec. 31, 2019, reflecting continuing declines in first-class and advertising (marketing) mail volumes, the United States Postal Service announced Feb. 6.
Total revenues for the first quarter of fiscal year 2020 (Oct. 1 to Dec. 31, 2019) fell to $19.4 billion, down 1.8 percent from $19.7 billion in the same period of the previous year.
That gave the Postal Service a net loss of $748 million for the quarter, compared to a $1.5 billion loss in the first quarter a year earlier.
Advertising mail volume fell by 5.4 percent from the 2019 levels, which included greater quantities of election mail, the USPS said.
Periodicals volume fell by 7.7 percent, and shipping and package volume fell by 4.6 percent despite a 2.3 percent increase in revenues.
Postmaster General Megan Brennan said the Postal Service’s “overall volumes and revenues for the quarter were down and we continue to face systemic profitability challenges due to our restrictive business model and mandated costs.”
One of the shipping challenges the USPS has faced in recent months is the decision of large shippers, such as Amazon, to transport more of their shipments on their own networks instead of using the Postal Service.
In a briefing for reporters, postal officials declined to offer any more details of these changes, saying that the Postal Service does not comment on individual customers.
Brennan did say, in response to a question, that the USPS anticipates it will make a production request for its new generation of delivery vehicles in “late summer or early fall.”
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