The high cost of fuel certainly contributed to losses as well. Just in this quarter alone, the Post Office has a $2 Billion dollar loss. They pay over $5 Billion dollars a year in pensions.
One way to save money is a 5-day a week work system that ends Saturday deliveries. However, it is just a consideration and must be approved first.
When will the U.S. Post Office run out of money? September is the end of the physical year, that’s just four months away, and then the Master General says it might just run out of cash by then and default in it’s payments to the Federal Government.
There are several reasons for the Post Office being in financial trouble. One reason is an increase of patrons’ use in email. Another is competition with FedEX and UPS (United Parcel Service).
The Post Office lost $8.5 Billion dollars in 2010. Even though they think they figured out how to save $1.6 Billion this physical year, high gas prices may erase all of that so now is the time to start in with letter carrying to save fuel.
Apparently, there is a big meeting going on at the Hill right now, to see if there is something lawmakers can do to help out a dieing industry. Can we say, “I feel another bailout coming?” Perhaps!