U.S. Post Office swings to $56 billion profit in latest year due to benefit from PSRA enactment

The U.S. Postal Service recorded a fiscal 2022 net profit of $56.0 billion, after a loss of $4.9 billion in the same period a year ago, due primarily to a one-time benefit of $57.0 billion recorded following the enactment of the Postal Service Reform Act (PSRA). The PSRA, enacted in April 2022, repealed the requirement that the USPS prepay future retiree health benefits and canceled all past due prefunding obligations. The controllable loss, which excludes the PSRA benefit and other nonoperating expenses, narrowed to $473 million from $1.5 billion a year ago. Revenue grew 1.9% to $78.51 billion, while volume fell 1.2% to 128.84 billion pieces. First-class mail revenue rose 3.3% despite a 3.4% drop in volume due to price increases. Shipping and packages revenue fell 2.2% and volume was down 5.3%, as the pandemic-related surge in ecommerce a year ago moderated. The segment’s adjusted loss increased by $2.0 billion, as compensation and benefits expense increased by $1.4 billion, or 2.9%, and as highway transportation expense jumped $696 million, or 12.8%. Marketing mail revenue jumped 9.7% and volume increased 1.4%, as the segment continued to recover from pandemic-related steep volume declines. “High inflation is presenting significant challenges to the Postal Service,” said Chief Financial Officer Joseph Corbett. “We are rising to meet these challenges through strategic management of our business that will allow us to continue providing high-quality service to the American public while supporting our employees and achieving long-term financial sustainability.”