USPS Fiscal Year 2024 Financial Report Highlights Need for Adaptation, Expanded Services
January 16, 2025
The Postal Service released its 2024 Form 10-K on Nov. 14, 2024, which reports on its financial results for the 2024 fiscal year (FY) that ended on Sept. 30, 2024.
Highlights of the report show that the total operating revenue for FY2024 was more than $79.5 billion, an increase of $1.35 billion, or 1.7 percent from FY2023. Revenue from shipping and packages was $32.26 billion, an increase of $625 million, or 2 percent from FY2023.
Despite the increases in revenue, total volume was down 3.2 percent for the year. Package volume, however, increased 2.7 percent, with a 1.9 percent increase in revenue. First-Class Mail (FCM) volume declined by 3.5 percent, but revenue increased by 3.38 percent. The revenue increase results from four price increases on market-dominant products in 2023 and 2024. And while the USPS revenue was down 1.3 percent for single-piece FCM, revenue was up 5.4 percent for presorted FCM. The price increases easily made up for the modest volume losses.
For the past decade, private companies such as FedEx, Amazon, and UPS have been investing in the expansion of their delivery networks at a financial loss in hopes for future gains, which has taken modest mail and package volumes away from the Postal Service. FedEx and Amazon have made the most investments, which may soon become profitable. This would allow them to gain more density in the market space, meaning that they would provide similar shipping and delivery services, and the Postal Service could lose its market share in the industry.
While the Postal Service remains a trusted public service, it must continue to adapt to changes in the mail mix and declining mail volumes by expanding its products and services to remain competitive. This may be difficult if the Postal Service enacts additional proposed changes to service standards that would further slow mail, degrade services, and undermine the public trust. Expanded products and services, like postal banking, could also increase revenue for the USPS and should remain a priority for the USPS to become fiscally solvent. ■
Total Volume: Down 3.2%
Total Revenue: Up 1.7%
First Class Mail Volume: Down 3.5%
First Class Mail Revenue: 3.38%