US Postal Service Reports $2.5 Billion Third Quarter Loss

The United States Postal Service reported a $2.5 billion net loss for the third quarter of fiscal year 2026. While this represents an improvement over the $3.1 billion loss recorded during the same period last year, leadership warns that the agency remains in a severe liquidity crisis.

Operating revenue increased 6.1% to $19.9 billion, supported by price hikes and growth in Marketing Mail and the Ground Advantage Shipping and Packages subcategory. These gains were partially offset by volume declines in First-Class Mail and general shipping and packages. To manage costs, the agency reduced 4 million work hours during the quarter.

Postmaster General David Steiner and CFO Luke Grossman stated that management actions alone cannot resolve systemic financial problems caused by an outdated business model and regulatory framework. Although recent financial maneuvers have pushed the projected cash shortfall window to between 2031 and 2034, officials maintain that long-term sustainability requires legislative and regulatory reforms. These requested changes include modifying retiree pension funding rules and increasing the statutory debt limit.