Postal Service posts profits after surge in holiday deliveries
The U.S. Postal Service announced Tuesday that turned a profit in the first quarter of the fiscal year in part due to a surge in deliveries around the holiday.
The Postal Service said in a statement that more than 1.1 billion packages were delivered during the holiday season, helping drive $318 million in net income for the quarter ending Dec. 31. The agency lost $748 million in the same period one year ago. Total revenue rose 11.1 percent, to $21.5 billion.
“Our strong growth in package volume during the holiday quarter shows how dramatically our business and revenue mix is shifting,” said Postmaster General Louis DeJoy.
The Postal Service has found itself in a highly publicized fiscal hole, a situation that was thrust into the spotlight during the 2020 presidential race.
DeJoy, a GOP fundraiser with ties to former President Trump, had sought to make cutbacks to deliveries and other services in what he said was an attempt to save money. However, critics said the moves would curtail the Postal Service’s ability to deliver and return mail-in ballots that were expected to heavily favor now-President Biden.
DeJoy continued to call for broad changes to how the Postal Service operates, saying it still faces an uphill climb to remain consistently profitable.
“While our positive financial results this quarter are certainly welcome, we continue to face systemic imbalances that make our current operating model unsustainable, and the economic impacts of the COVID-19 pandemic will continue to challenge the organization. It is essential that the Postal Service adopts comprehensive reforms so that we are able to meet the changing needs of our business and residential customers, and ensure our ability to provide reliable, universal mail and package delivery for all Americans,” he said.