OREANDA-NEWS. The U.S. Postal Service ended the first quarter of fiscal 2015 (Oct. 1, 2014 – Dec. 31, 2014) with a 4.3 percent increase in operating revenue over the same period last year and a net loss of \\$754 million. The increase in operating revenue was driven, in part, by the record number of holiday season packages delivered with high reliability during our busiest time of the year.   The net loss included a \\$1.4 billion expense accrued for the mandated prepayment to the Postal Service Retiree Health Benefits Fund.

Although revenue and volume are closely linked to the strength of the U.S. economy and changes in how customers use the mail, the Postal Service has been proactive in growing volume in Standard Mail and Shipping and Packages and slowing the decline of the most profitable product, First-Class Mail. Standard Mail volume was up 3.5 percent compared to the same period last year, driven by a 0.9 billion increase in political mail volume, a testament to its effectiveness in political campaigns. First-Class Mail volume decline slowed to a 1.1 percent decrease from the same period last year. Standard Mail revenue and First-Class Mail revenue were up 7.6 percent and 3.7 percent, respectively, compared to the same period last year, driven, in part, by the January 2014 price increase.

“Our employees delivered double-digit growth in packages this holiday season, which shows our growing ability to compete for and win new package delivery customers,” said Postmaster General and Chief Executive Officer Megan Brennan. “To keep the momentum going—and to ensure we are the shipper of choice for our residential and business customers—we will continue to expand customized delivery solutions and package capacity while delivering high levels of service.”

Commenting on the quarterly results, Brennan said, “The Postal Service performed well with regard to revenue generation and cost control during the holiday season.” 

“Though liquidity remains a concern, the Postal Service must begin to make necessary investments to grow our business and address some of the critical vehicle, facility, and package handling equipment requirements that have been deferred in recent years,” said Chief Financial Officer and Executive Vice President Joseph Corbett.