Postal Service losses mount to $5.1 billion last year

By HOPE YEN
Associated Press

WASHINGTON (AP) – The U.S. Postal Service says it lost $5.1 billion last year as a weak economy and increased Internet use drove down mail volume.

The bleak financial report for the fiscal year ending Sept. 30 was not as high as the $10 billion in losses previously estimated. But that’s because an annual payment of $5.5 billion the post office owed the federal government has been deferred to a later date.

Postal officials called the financial situation “dire.” They say the Postal Service will not be able to make the $5.5 billion payment due this Friday due to low cash flow.

Get Mike Causey in your email box. Sign up for our daily email alerts.

Postmaster General Patrick Donahoe has warned of a postal shutdown next year unless there is congressional action to address the agency’s long-term money problems.

Advertisement

(Copyright 2011 by The Associated Press. All Rights Reserved.)

Media Galleries