Postal losses continue despite sharp postage increases

Dec 1, 2023

The U.S. Postal Service posted a $6.5 billion loss in fiscal year 2023. Its key mail classes have lost more than 27% in volume over the last two years.

The dismal results, coming at a time when the new Delivering for America plan had projected USPS’ beginning to emerge into the black after two decades of losses, drew criticism from some mailing industry critics who have opposed steep price increases since 2021.

Art Sackler, executive director of the Coalition for 21st Century Postal Services (C21) said, “As we head into the holiday shipping season …postal costs and prices are increasing much faster than businesses and consumers can keep up.” He called for Congress to turn its attention to postal reform.

NNA chair John Galer, publisher of The Journal-News in Hillsboro, Illinois — who serves as one of three NNA appointees to the Postmaster General’s Mailers Technical Advisory Committee — said the substantial price increases for Periodicals since 2021 have hobbled newspapers’ subscriber bases, but they have not helped USPS become sustainable.

“We were told these massive postage increases — about 40% since 2021— were necessary to fuel the Delivering for America plan, which would fix USPS. The magnitude of the current losses should persuade any who questioned the wisdom of driving away mail that this plan can’t work. The Postal Service urgently needs to address the needs of its customers before we find ourselves with a completely broken system,” Galer said. “NNA echoes the call of C21 to Congress. It is time to get costs into line with the future of mail.”