The U.S. Postal Service continues to bleed red ink.
In its fiscal 2023 third quarter, which ended June 30, the Postal Service lost $860 million on an adjusted, non-GAAP basis, compared with an adjusted $459 million loss. On a GAAP basis, the net loss was $1.7 billion, compared to net income of $59.7 million in the year-earlier quarter.
Operating revenue declined 0.9% to $18.6 billion, the Postal Service said.
Shipping and package volume in the quarter was down 2.4% to 1.7 billion pieces from 1.74 billion. Shipping and package revenue remained virtually flat at $7.5 billion.
Total revenue came in at $18.57 billion, down from $18.7 billion in the year-earlier quarter. Volume fell to 27 billion pieces from 30.4 billion. First-class mail and marketing mail posted a combined drop of about 2 billion pieces.
Total operating expenses rose 9.6% to $20.5 billion, the Postal Service said.
When the Postal Service launched its 10-year “Deliver for America” plan in March 2021, it had hoped to be at financial breakeven by FY 2023. That objective was abandoned some time ago. On Tuesday, Postmaster General Louis DeJoy told the agency’s board of governors that “significant inflation costs,” among other strains, have added $6 billion of unplanned cost in 2023 and “will be in our operating cost base well into the future.”