Report: USPS Shift to Ground Lowered Fiscal 2024 Costs

By shifting its focus from air transport to ground transport, USPS pared back its costs for fiscal year 2024, according to a new report.

The Postal Regulatory Commission’s (PRC) analysis of the Postal Service’s fiscal 2024 finances determined that air transport expenditures dropped 20.8% by moving those packages on the ground.

A summary of the report’s findings noted that ground transportation costs likewise decreased, albeit at a more modest rate: 8.2% for the fiscal year. This was attributed to “network optimization efforts.”

Operating revenue rose $1.2 billion to $79.5 billion for the fiscal year, while revenue from competitive products increased $500 million and market dominant revenue climbed $800 million. The summary attributed this to price increases.

Higher revenue was accompanied by higher operating expenses, with fiscal 2024 coming in at $81.8 billion, a $600 million increase.

Overall, the Postal Service recorded a net loss of $1.8 billion from operations and a total net loss of $9.5 billion for the fiscal year.