2/9/16 NALC President Fredric Rolando issued a statement following the U.S. Postal Service’s release today of its financial report for the first quarter of Fiscal Year 2016, covering October through December of 2015:
The $1.3 billion quarterly operating profit announced today by the Postal Service is positive news that augurs well for the future. The continuing financial upswing shows the importance of maintaining and strengthening the unparalleled—and profitable—postal network, which offers Americans the world’s most affordable delivery services.
This impressive performance at the start of Fiscal Year 2016 builds on back-to-back years of operating profits each exceeding $1 billion, without a dime of taxpayer money.
These results aren’t a fluke. They stem from two structural factors: An improving economy has helped stabilize letter revenue, and Internet-driven online shopping has sent package volume sharply upward—up 16.2 percent over the first quarter of last year.
Today’s good news is consistent with—and reinforces—the emerging consensus among key lawmakers, the Postal Service, postal unions, businesses, mailers and industry groups to move forward with practical reform that all stakeholders can buy into. Such reform should include stabilizing rates as well as addressing the pre-funding mandate that is responsible for the red ink that’s been reported in previous quarters.