Impact of COVID19 on USPS Finances
Despite historic disruptions to its operations from the pandemic, the Postal Service's cash position is at one of its highest levels ever, according to a financial report from Bob Fisher of Fisher Analytics and also with IMAG member Pirate Ship. The Postal Service has about $13.2 billion dollars in cash-on-hand, although its liquidity outlook is complex, depending on decisions by the Board of Governors, the future balance between revenue and expenses, and capital expenditure decisions. In the April to May period, First Class Mail declined 11 percent, with the federal government stimulus and Census mailings mitigating the decline. Marketing Mail volume severely declined 43 percent. Package volume increased 48 percent to levels even higher than the holiday season -- this increase in packages helped to offset the drop in letters and flats. Revenue in April-May was only 0.5 percent below last year for these two months. See the full detailed report.