The U.S. Postal Service reported a $1.7 billion loss for its current fiscal year.
In the monthly meeting of its Board of Governors Tuesday, the postal service attributed this loss mainly to a lack of mail volume growth because of the current economic slowdown and the Sept.11 terrorist attacks.
Operating revenues for the year were $65.8 billion while operating expenses were $65.6 billion and income from operations was $194 million.
Net interest on deferred retirement and borrowings of $1.9 billion resulted in a net loss of $1.7 billion.
In the final three weeks of the fiscal year, following the events of Sept. 11, the Postal Service has been impacted further by a mail volume decline of approximately 800 million pieces. This decline eliminated the possibility of mail volume growth for the year.
The Postal Service finished the year with a, 0.2% decline of mail volume of approximately 420 million pieces, the first volume drop since 1991.
In other news, the BOG approved an appropriation request to Congress of $988 million, which includes $928 million for reimbursement for the full remaining amount due the Postal Service under the Revenue Foregone Act of 1993.
In 1993, Congress set up a 42-year installment repayment plan as part of omnibus budget reconciliation efforts.
The Direct Marketing Association supported the BOG
