USPS ‘may never fully recover’ from sudden drop in mail volume
Industry estimates more than $20 billion in lost revenue
MADISON, Wis. — Postal service employees handle mail and packages six days of the week. But because people are now encouraged to stay home, the postal service is experiencing an extremely low volume of mail which is hurting its finances.
Postmaster General Megan Brennan said, “We are at a critical juncture in the life of the Postal Service. At a time when America needs the postal service more than ever, the reason we are so needed is having a devastating effect on our business. The postal service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.”
Brennan said the pandemic will increase the postal service’s net operating loss by more than $22 billion over the next 18 months and by more than $54 billion dollars in the long term, which Brennan said is “threatening our ability to operate.”
“As Congress and the Administration take steps to support businesses and industries around the country, it is imperative that they also take action to shore up the finances of the postal service, and enable us to continue to fulfill our indispensable role during the pandemic, and to play an effective role in the nation’s economic recovery,” Brennan said.
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