USPS has announced its Q3 2020 results, reporting total revenues of $17.6bn up 3.2% compared to the same period last year. Total operating expenses were $19.8bn, a year-on-year increase of 2.5%.
In terms of segments; First-Class Mail revenue decreased by $373m (6.4%), on a volume decline of 1.1bn pieces, or 8.4%, compared to the same quarter last year. Marketing Mail revenue declined by $1.4bn, or 37.2%, on a volume decline of 6.4bn pieces, or 36.4% year-on-year. Secular declines in mail have continued to negatively affect mail revenue and volumes, and those declines have been significantly exacerbated by the effects of the COVID-19 pandemic.
Meanwhile, Shipping and Packages revenue increased by $2.9bn, up 53.6% year-on-year, on a volume increase of 708m pieces, or 49.9%, compared Q3 2019. In the near term, the Postal Service anticipates that these trends will continue given the surge in e-commerce as many Americans stay at home due to the COVID-19 pandemic.
“Significant declines in our mail volumes as the result of the pandemic were largely offset by corresponding growth in our package business, but the reality remains that the Postal Service is in a financially unsustainable position absent significant fundamental change,” said Postmaster General and Chief Executive Officer Louis DeJoy.