According to the Associated Press the USPS is expecting that they will lose $15 billion dollars in 2012, compared to the $5.1 billion they lost in 2011.
Because of this expected loss the US postal service has requested that Congress let them raise stamp prices by 5 cents.
The price of a postcard will increase from 32 cents to 33 cents. The new International Forever Stamp will cost $1.10.
The Commission also approved several mail classification changes that primarily affect Special Services.
According to the official press release, in a separate decision on November 8, 2012, the Commission gave approval for increases in mail products that compete in the market place. Priority Mail products will rise an average of 6.3 percent and Express Mail will
increase 5.8 percent overall.
The new prices will go into effect January 27, 2013.
U.S. Postal Service Sees Record Loss In 2012
The U.S. Postal Service ended the 2012 fiscal year (Oct. 1, 2011 – Sept. 30, 2012) with a record net loss of $15.9 billion, compared to a net loss of $5.1 billion for the same period last year. The loss included expenses of $11.1 billion related to two payments to prefund retiree health benefits. The Postal Service, which is uniquely required by law to prefund these obligations, was forced to default on these payments.
Resolving the prefunding requirement, which made up 70 percent of the net loss, and providing more commercial flexibility to allow the Postal Service to manage its business, are among legislative changes needed for USPS to fully implement its business plan to return to financial stability.
“It’s critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health,” said Postmaster General and CEO Patrick Donahoe. “We continue to do our part to grow revenue and reduce expenses by making our operations more efficient and by providing our customers with new and expanded services to meet their mailing and shipping needs. Additionally, through the expanded use of technology, including better use of digital tools and mobile technology, we are providing business mailers with new opportunities to connect with customers in a more individualized way.”