The United States Postal Service (USPS) reported a $2.5 billion net loss for the third quarter, highlighting the agency’s continuing financial struggles.
The loss improved from $3.1 billion during the same period last year, helped by $416 million in workers’ compensation savings and higher operating revenue.
USPS generated $19.9 billion in revenue, up 6.1% from a year earlier but slightly below the previous quarter’s $20.2 billion.
Postmaster General David Steiner warned that the agency still faces a severe liquidity crisis and could run out of cash by early 2027.
USPS has a $15 billion federal borrowing limit, restricting its ability to cover growing costs. Steiner has proposed raising First-Class stamp prices from 90 to 95 cents.
USPS also raised Forever stamp prices by four cents in July while taking other steps to conserve cash.
The agency also spends $3.4 billion annually delivering mail six days a week, with 70% of those routes losing money.