Post Office Lost $1B in 3rd Quarter

The Postal Service recorded a net loss of more than $1 billion in the third quarter of the fiscal year, the agency said today. Officials blamed reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.

For the quarter ended June 30, the loss was $1.1 billion, with operating revenue at $17.9 billion, a drop of $437 million. Operating expenses totaled $19 billion, an increase of $178 million, or 1%, from the third quarter last year. Total mail volume was 48.5 billion pieces, a 5.5% drop from the same period last year. (More post office stories.)