Post Office Hemorrhages $2 Billion in the Spring

By Brian Shields

Mon Aug 11th, 2014 11:06am America/Los_Angeles

postal-service
RELATED COVERAGE

WASHINGTON (AP) — The U.S. Postal Service says it lost $2 billion this spring despite increasing its volume and charging consumers more money to send mail.

The agency’s quarterly loss was significantly higher than its $740 million loss during the same three-month period last year. The agency said revenue jumped 2 percent compared to last year. But because of compensation and benefit costs, the agency continues to face a deficit.

Agency officials said the Postal Service would likely remain in bad shape unless Congress acts on reform legislation. In a statement released Monday, the agency said it would have to default on a congressionally mandated payment of $5.7 billion this September for health benefits for future retirees.

(Copyright 2014, KRON 4 and the Associated Press, All rights reserved.)

blog comments powered by Disqus