The U.S. Postal Service expects to end its current fiscal year with a $300 million loss instead of a projected $100 million surplus, Postmaster General William J. Henderson said last month. It would be the first loss since 1994, when the USPS posted its biggest deficit ever: $1.8 billion. A year later, it reported a $1.8 billion surplus, and has had massive surpluses since then. Henderson, who made the disclosure shortly after meeting with the USPS Board of Governors, attributed the projected loss to unanticipated costs. These include the sharp hike in gasoline prices over the summer, as well as a decline in first class mail volume and revenue, which was partially offset by a 5% increase in standard A (advertising) mail. He did not address what impact this finding might have on the rate case pending before the Postal Rate Commission in which the USPS is seeking its support for a rate increase next January averaging 6.4%.
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