Louis DeJoy: Our results this quarter demonstrated positive trends regarding improved revenue generation and cost control
The U.S. Postal Service has announced its financial results for the second quarter of fiscal year 2024 (Jan. 1, 2024 – Mar. 31, 2024). The net loss for the quarter under generally accepted accounting principles (GAAP) totalled $1.5 billion, compared to a net loss of $2.5 billion for the same quarter last year.
GAAP results for the quarter were negatively impacted by $1.4 billion of expenses attributed to the amortization of unfunded retiree pension liabilities, offset by a workers’ compensation non-cash benefit of $224 million driven by actuarial revaluation and discount rate changes; these factors are not controllable by the Postal Service. Controllable loss, as defined below, for the quarter was $317 million, compared to a controllable loss of $498 million for the same quarter last year. These results were favorably impacted by increased revenue and lower transportation costs, partially offset by the continued effect of inflation on operating expenses.
Total operating revenue was $19.7 billion for the quarter, an increase of $410 million, or 2.1 percent, compared to the same quarter last year.
Revenue for the overall Shipping and Packages category increased $89 million, or 1.2 percent, on a volume increase of 25 million pieces, or 1.5 percent, compared to the same quarter last year. USPS Ground Advantage, the Postal Service’s shipping offering which provides a simple, reliable, and more affordable way to ship packages, has continued to experience wide adoption in the marketplace.
First-Class Mail revenue increased $280 million, or 4.4 percent, on a volume decline of 261 million pieces, or 2.2 percent, compared to the same quarter last year. Marketing Mail revenue increased $74 million, or 2.1 percent, on a volume decline of 282 million pieces, or 2.0 percent, compared to the same quarter last year.
“Our financial results this quarter demonstrated positive trends regarding improved revenue generation and cost control. This reflected progress in the implementation of our 10-year transformation and modernization plan,” said Postmaster General Louis DeJoy. “We also saw gains in package deliveries through our successful USPS Ground Advantage offering, which was enabled by our new operating model. As we continue to modernize our processing, transportation, and delivery functions, we will increasingly operate with greater efficiency and capability, and at a consistently higher level of performance.”
Total operating expenses were $21.3 billion for the quarter, a decrease of $685 million, or 3.1 percent, compared to the same quarter last year, reflecting our cost control efforts over transportation expenses and work hours.
“The second quarter saw continued growth in package revenues, which along with lower transportation expenses, favorably impacted our business,” said Chief Financial Officer Joseph Corbett. “Inflation, and higher mandated retirement benefit costs, continue to offset these positive efforts. We continue to manage the costs within our control, working toward financial stability for our organization through the full implementation of the Delivering for America plan.”