Business U.S. Postal Service
Postal Problems David Goldman/AP

In this February 2014 file photo, U.S. Postal Service letter carrier Jamesa Euler delivers mail in the rain in Atlanta. Buffeted by threats from Amazon drones and Uber to delivery by golf cart, the beleaguered U.S. Postal Service is counting on a different strategy to stay ahead in the increasingly competitive package business: more freedom to raise your letter prices.

August 10, 2017

Postal Service: Cash crunch could disrupt mail delivery

WASHINGTON — The U.S. Postal Service is warning that it will likely default on up to $6.9 billion in payments for future retiree health benefits for the fifth straight year. It is citing a coming cash crunch that could disrupt day-to-day mail delivery.

The post office says it expects cash balances to run low by October. Postmaster General Megan Brennan stressed an urgent need for federal regulators to grant the Postal Service wide freedom to increase stamp prices to cover costs. She points to continuing red ink due to declining first-class mail volume and the expensive mandates for retiree benefits.

The Postal Service on Thursday reported a quarterly loss of $2.1 billion, compared to a $1.6 billion loss in the same period last year. That came despite double-digit growth in package delivery.

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