The U.S. Postal Service recorded a net $1.3 billion loss during in October through December, a much narrower deficit than a year earlier, but still reflective of agency's fiscal woes as the holiday season is historically its most profitable time.
The loss for the first quarter of the government's fiscal year is down substantially from the $3.3 billion shortfall a year earlier. A continued decline in first-class mail and a Congressional mandate to set aside more than $5 billion a year for future retiree health-care expenses were the driving factors for the most recent loss, the Postal Service said.
"We have mitigated our losses," said Chief Financial Officer Joe Corbett. "However, our liquidity concerns can only be fully resolved if Congress takes action to address our unsustainable business model."