Lexington Institute Postal Trendwatch -- April 2014
U.S. Postal Service (USPS) lost $354 million in Q1 FY 2014 -- the 19th
money-losing quarter of the prior 21. Still, the loss represents a
significant improvement over the $1.3-billion loss posted in the same
period last year.
Service's operating revenue grew $334 million, or 1.9 percent, relative
to Q1 FY 2013, driven by growth in Shipping and Package services
revenue and operational cost cuts totaling $574 million.
But this revenue growth was not enough to offset losses from declining First-Class Mail volume.
First-Class Mail consumers continue
to pay a disproportionate share of institutional costs, contributing
significantly to overhead in 2013 despite declining service quality.
Stamp prices increased by 6 percent in January 2014, while prices for
competitive products rose by 2.4 percent.
Articles in this
Monopoly Consumers Face Higher Rate Increases than Competitive Products Consumers
First-Class Consumers Contributing Heavily to Institutional Overhead
Monopoly Service Quality Declines
Postal Service Pilots New Competitive Package Services
New Investments on Technology Upgrades
To view the rest of The Lexington Institute's Postal
download the PDF