Postal Service’s $15.9-Billion Loss Highlights Urgent Need for Legislative Reform

Other details of the yearly results compared to the same period last year include:

• Total mail volume of 159.9 billion pieces compared to 168.3 billion pieces a year ago
• Operating revenue of $65.2 billion compared to $65.7 billion in 2011
• Operating expenses of $81.0 billion (including the $11.1 billion expense associated with prefunding retiree health benefits) compared to $70.6 billion the year before

The $15.9 billion loss was driven by $13.4 billion in expenses that were outside the control of the Postal Service in the short-term. These expenses include the $11.1 billion retiree health benefits prefunding expenses and the expenses related to the long-term portion of workers’ compensation. When these expenses are deducted the net loss would have been $2.5 billion. The Postal Service has been successful in reducing controllable expenses as mail volume and revenues have declined.