Aug. 11, 2014—Statement from National Association of Letter Carriers President Fredric V. Rolando, on today’s U.S. Postal Service report for the third quarter of Fiscal Year 2014:

The figures released today by the Postal Service show an operating profit of slightly more than $1 billion for the first three quarters of Fiscal Year 2014, continuing the operating profitability that began in October 2012. The third quarter saw mail revenue increase by $424 million.

This performance is driven by two underlying trends. As the economy improves, letter mail revenue is growing. And as more people shop online, package revenue is skyrocketing. The Internet is now a net positive for USPS, auguring well for the future as e-commerce grows. In the third quarter, which the Postal Service’s CFO called “a very good quarter in a lot of ways,” package revenue rose 6.6 percent, standard mail revenue rose 5.1 percent and first-class mail revenue was up 3.2 percent.

The red ink at USPS is attributable to non-mail factors—chiefly the 2006 congressional mandate that the Postal Service pre-fund future retiree health benefits, something no other public or private entity is required to do. That annual $5.6 billion annual charge accounts for most of the “losses.” The other factor this quarter was an adjustment in workers’ compensation interest rates, which the CFO called “a technical fair-value adjustment’ just on paper.”

Given the positive mail trends, it would be irresponsible to degrade services to Americans and their businesses, which would drive away mail—and revenue—and stop the postal turnaround in its tracks. Lawmakers need to preserve and strengthen the profitable postal networks—which are the future of the USPS as it increasingly delivers not just six but seven days a week—while fixing the pre-funding fiasco.

USPS fiscal turnaround continues in Q3 2014

The Postal Service released its third quarter financial results this morning and the numbers tell a clear story: the USPS financial turnaround continues.

So far this year, USPS has seen growth in overall revenue, operating profit, letter mail revenue and shipping and package revenue.

Postal finances have seen steady improvement since 2012.  Operating profit for the first three quarters of the year increased by $1.4 billion vs. 2013 and by $2.2 billion vs. 2012.

Booming e-commerce activity has been a key driver of the Postal Service’s fiscal turnaround.  USPS shipping and package volume increased 7.7 percent year-over-year in the third quarter.

These figures show that the digital age can be a critical opportunity – not a threat – for the Postal Service.

Even the declines in letter mail volume due to Internet diversion are leveling, and large shipping and package revenue gains are entirely offsetting more gradual declines in letter mail volume.

As these positive trends continue, calls to slash and shrink our nation’s postal system look more and more misguided.  It’s time to strengthen the Postal Service so it can continue to grow, instead of cutting critical services that Americans rely on every day.

Lawmakers in Washington should work together and with all postal stakeholders on comprehensive postal reform that frees USPS from unprecedented financial strangleholds like the mandate to pre-fund health retiree benefits 75 years in advance and allows it to innovate for the future.

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