U.S. Post Office swings to a loss as revenue falls but costs rise, and as e-commerce surge subsides

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U.S. Post Office swings to a loss as revenue falls but costs rise, and as e-commerce surge subsides
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U.S. Postal Service swings to loss as e-commerce surge subsides

The U.S. Postal Service announced Tuesday that it swung to a fiscal first-quarter loss as expenses increased while revenue fell, as shipping and packages volume declined during the holiday period. For the quarter to Dec. 31, the Post Office recorded a net loss of $1.55 billion, after net income of $318 million in the same period a year ago.

First-class mail revenue rose 2.5% to $6.46 billion and market mail revenue increased 7.3% to $4.47 billion, but shipping and packages revenue dropped 7.9% to $8.64 billion. Meanwhile, total operating expenses increased 7.9% to $22.82 billion."Despite the record package volume during the holiday season, the overall surge in e-commerce has begun to subside," said Chief Financial Officer Joseph Corbett.

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