US Postal Service Reports Huge $1.9 Billion Second Quarter 2009 Loss


The U.S. Postal Service reported that despite actions to reduce its costs and increase its revenue, it sustained a net loss of $1.9 billion during the second quarter (January 1 - March 31 2009).

The economic recession, as well as other factors such as electronic alternatives to letter mail (alternatives such as e-mail, instant messaging, texting and the like), continue to reduce mail volume and revenues generated by the U.S.P.S., and it is likely the U.S.P.S. will face a huge cash shortfall at the end of its fiscal year.

A significant amount of the Postal Service losses can be attributed to an unprecedented downturn in mail volume, which declined 14.7 % when compared to the same period a year ago.

The U.S.P.S. has suffered net losses from operations in 10 of the last 11 fiscal quarters, so the second-quarter 2009 loss is not a surprise. But this quarter's loss is several orders of magnitude larger than its losses in the past.