United States Postal Service (USPS) CFO Richard Strasser said today it ended its fiscal year $1.7 billion in the red, and blamed the loss on the declining economy and increased competition. Strasser added that the terrorist attacks of September 11 also caused a reduction in mail volume.
Strasser said USPS ended the fiscal year with revenues of $65.8 billion and expenses of $67.5 billion. The fiscal year ended September 30, which was before the anthrax attacks through the U.S. Mail began. That, Strasser said, will result in additional costs to the agency.
Postmaster General John Potter said that without the sharp drop in mail volume after the attacks, the loss for the fiscal year would have been reduced by $200 to $300 million.
USPS has applied for an increase in stamp prices to take effect next year, which would raise the price of a first-class stamp by 3 cents, to 37 cents. It has also asked Congress for additional funds to help cover expenses from the terrorist attacks.