Holiday Package Delivery Boosted USPS Revenues, But Losses Still Mount, Says Donahoe

An 18 percent surge in holiday package delivery boosted U.S. Postal Service revenues, but not enough to cover money owed for retiree health benefits and other government requirements, Postmaster General Patrick Donahoe said Tuesday at the National Press Club.

Donahoe said if the Postal Service did not have to pay the congressional mandates it would have reported a $1.4 billion operating profit this year. Instead, it owed $5.7 billion to the retiree benefits fund.

"Can the Postal Service operate profitably far into the future? Absolutely," Donahoe said. "Can it do these things within its current business model? Not likely."