Continued growth in shipping and package revenue of 4.7 percent and improved efficiency helped offset continued declines in first-class mail volume but the Postal Service still posted a $1.3 billion loss in the first quarter of fiscal 2013.
USPS has posted losses consistently for years with the first quarter usually providing the most revenue as it spans the holiday and shipping season. Good package revenue and growth in advertising mailings leading up to the Presidential elections helped this year as well.
"The encouraging results from our holiday mailing season cannot sustain us as we move deeper into the current fiscal year and face continuing financial challenges," said Donahoe.
Liquidity also remains a problem. USPS said current projections indicate that the Postal Service will once again have a low level of liquidity in the second half of this year and that there will be insufficient funds to make the required $5.6 billion payment due September 30 to pre-fund retiree health benefits, as was the case last year.
