USPS Losses Deepen, Shortfall Looms

The U.S. Postal Service (USPS) ended the second quarter of this fiscal year (Jan. 1 to March 31) with a net loss of $2.2 billion, compared to a net loss of $1.6 billion for the same period in FY 2010.

The growing loss comes despite what the USPS calls "significant cost reductions and revenue growth initiatives." The agency reiterated that current financial projections indicate it will have a cash shortfall and reach its statutory borrowing limit by the end of the fiscal year. Absent substantial legislative change, the Postal Service will be forced to default on payments to the federal government.