(Attaches story to news alert corrected to show period is
fiscal, not calendar, Q1)
WASHINGTON Feb 8 The U.S. Postal Service lost
$1.3 billion in the October to December quarter, an official
said on Friday, days after the beleaguered mail agency announced
plans to cut back on Saturday delivery to save money.
The Postal Service lost $3.3 billion in the same period a
This year, extra mail tied to the November elections and
stronger revenue from holiday-related packages contributed to a
better quarter, USPS Chief Financial Officer Joe Corbett said
during a meeting of the Postal Service Board of Governors.
The October to December period, which is the first quarter
of the Postal Service's fiscal year, is typically the strongest
because of the holidays.
The mail service has been grappling with tumbling mail
volumes as Americans communicate more online and has struggled
under the weight of massive required payments for future retiree
The Postal Service defaulted twice last year on required
payments to the federal government and lost almost $16 billion
during the fiscal year.
Earlier this week, the mail agency announced plans to stop
delivering first-class mail on Saturdays starting in the first
week of August as part of a series of cost-cutting steps the
agency is taking. The agency said cutting back to five-day mail
delivery would save $2 billion a year.
The Postal Service will continue delivering packages on
Saturdays and will keep post offices on their normal schedules.
(Reporting by Elvina Nawaguna Writing by Emily Stephenson;
Editing by James Dalgleish)