U.S. Postal Service reports record $15.9 billion loss
The struggling U.S. Postal Service reported an annual loss of a record $15.9 billion on Thursday, and also forecast more of the same in 2013. The Postal Service has been forced to default on billions in payments to avert bankruptcy. The losses for the fiscal year were more than triple the $5.1 billion loss in the previous year. The agency has reached its borrowing limit, forcing it to operate with little cash on hand.
Much of the loss was due to mounting costs for future retiree health benefits, which made up $11.1 billion of the losses. The agency stated it has been hampered by Congressional inaction on a postal overhaul bill that would allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future health benefits.