US Postal Service posts a profit amid peak season, with DeJoy asserting that reforms are successfully implementing
The U.S. Postal Service (USPS) has reported a profit of $144 million during its busiest season of the year, marking the first time since the height of the COVID-19 pandemic that the service operated in the black. This turnaround comes amidst ongoing criticism and reform plans, which have been met with both support and opposition.
Postmaster General Louis DeJoy, who took office in 2021, attributed the success to changes he implemented to cut costs, bring in new business, and make the postal network more efficient. DeJoy's plans, however, have faced criticism from various quarters. Last week, the Postal Regulatory Commission criticized DeJoy's reform plans, suggesting they were poorly thought out and contained "little convincing evidence" they would succeed.
First-Class mail revenue increased by 4%, while marketing mail income climbed by 11%, largely driven by political and election mail. Money coming in from shipping and packages grew by 3% in the quarter. Much of the turnaround came from changes in the calculations of USPS' workers' compensation obligations. The agency slashed $326 million in transportation expenses.
Despite the recent profit, USPS lost $9.5 billion in FY24 and expects another loss in the coming year. DeJoy initially projected USPS would be profitable by 2023, but now expects another loss in fiscal 2025. DeJoy and postal management have cautioned they expect the Postal Service to lose billions of dollars in fiscal 2025.
The new Postmaster General of the U.S. Postal Service, David Steiner, took office in 2025. DeJoy countered the criticism from the Postal Regulatory Commission, stating that they had argued "essentially, that they are smart, and we are dumb." A House committee has also piled on criticism of DeJoy's postal overhaul plans.
A GOP senator has threatened to "kill" DeJoy's plan to reform USPS. Despite these challenges, DeJoy remains optimistic, stating that the turnaround in the most recent fiscal quarter proves that his plan can succeed and bring about "service excellence." The USPS is set to continue navigating these challenges in the coming years.
