Skip to main content    
Skip navigation

# POSTAL REGULATORY COMMISSION

                -  Filings 
                - 
                - 

                  -                  About PRC          Toggle submenu  -                  Leadership           
-                  Offices           
-                  Contact Us           
-                  Employment Opportunities           
-                  POSTAL REGULATORY COMMISSION           
 
                  -                  PARTICIPATE          Toggle submenu  -                  Guide           
-                  Consumer Assistance           
-                  FAQ           
-                  FILE ONLINE           
-                  eDockets User Guide           
 
                  -                   CASE INFORMATION          Toggle submenu  -                  Daily Listings           
-                  Active Cases           
-                  Dockets Pending Automatic Closure           
-                  Search All Cases           
-                  Rate Commission Archives           
-                  eDockets User Guide           
-                  RULE SUMMARY           
 
                  -                  REFERENCES          Toggle submenu  -                  Rules of Practice           
-                  Regulations           
-                  Commission Orders           
-                  Mail Classification Schedule           
-                  Title 39           
-                  Strategic Plan           
-                  Postal Accountability and Enhancement Act           
-                  Available Rate Authority           
-                  SCHEDULE OF REGULAR AND PREDICTABLE PRICE CHANGES           
-                  Negotiated Service Agreements Statistics           
-                  EX PARTE POLICY           
-                  Postal Service Reform Act of 2022           
-                  Federal Register Notices           
 
                  -                  REPORTS AND DATA          Toggle submenu  -                  PRC Reports           
-                  ACD           
-                  ACD HIGHLIGHTS           
-                  Archives           
-                  Webcasts           
-                  Financial Report Dashboard           
-                  RATE AUTHORITY DASHBOARD           
-                  NSA Dashboard           
-                  USPS Reports           
-                  SERVICE PERFORMANCE           
-                  Performance Plan           
-                  Performance Plan Highlights           
-                  Beta-Data Visualizations           
-                  USPS Service Performance Dashboard           
 
                  -                  NEWSROOM          Toggle submenu  -                  Press Releases           
-                  Speeches           
-                  Papers           
-                  Events           
-                  Congressional Submissions           
 

Wed, 05/18/2022 - 12:00

##   PRC Issues Financial Analysis Report on Postal Service Financial Position

**Washington, DC** – The Postal Regulatory Commission (Commission) today released its *Financial  Analysis* of the Postal Service’s 2021 financial results. The impact of the COVID-19 pandemic continued to affect Postal Service volume, revenue, and expenses.

Each year, the Commission releases its analysis of the Postal Service’s finances for the prior fiscal year (FY). This year’s analysis discusses the impact of the pandemic on the revenue and compensation cost of the Postal Service in FY 2021.

In FY 2021, the Postal Service had a net loss from operations of $2.7 billion, a $0.9 billion improvement from FY 2020. The decrease in net operating losses for FY 2021 was primarily due to $4.0 billion more revenue than in FY 2020. When non-operating expenses are included, the Postal Service had a total net loss of $4.9 billion in FY 2021—an improvement of $4.2 billion compared toFY 2020.

While the Postal Service realized an overall improvement in total net losses in FY 2021, continued losses have expanded the gap between the Postal Service’s assets and liabilities. Total assets at the end of FY 2021 were $46.4 billion versus total liabilities of $122.1 billion. A significant portion of the Postal Service’s liabilities was driven by unpaid retiree health benefit (RHB) liabilities totaling $57.0 billion at the end of FY 2021. The recent enactment of the Postal Service Reform Act removes this $57.0 billion liability of past due RHB obligations and eliminates annual payments for the RHB normal costs and the Retiree Health Benefits Fund amortization.

Market Dominant and Competitive products volume fluctuated throughout the year, largely the result of the COVID-19 pandemic.

Market Dominant revenue decreased in FY 2021 by $97 million or 0.2 percent from FY 2020. Increases in revenue per piece for overall Market Dominant products were not enough to offset declines in volume and fluctuation in mail mix and signal the severity of the effects of the pandemic during that time. In FY 2021, Market Dominant volume declined while package volumes rose as a result of continued growth in e-commerce that included record holiday volume. These changes in volume affected overall revenues and cost in addition to workforce and workhour changes in response to pandemic-related labor costs.

Total revenue from Competitive products increased by $3.6 billion or 11.8 percent in FY 2021 compared to FY 2020. This increase was the result of significant growth in revenue per piece in FY 2021, with domestic Competitive products average unit revenue increasing by approximately 12.6 percent. Total volume of Competitive products also increased by 1.8 percent in FY 2021, but the growth slowed in the second half of FY 2021 as the economy began to recover and the effects of the pandemic subsided. 

Taken together, the Postal Service’s financial position continues to be adversely impacted due to insufficient current assets to cover current liabilities, and the instability of certain Market Dominant mail products.

The Commission’s report was developed using information from the Postal Service’s FY 2021 10-K Statement and measured against its FY 2020 and FY 2021 Integrated Financial Plan, Cost, and Revenue Analysis report, Cost Segments and Components report, and the Revenue, Pieces, and Weight report. A complete copy of the *Financial Analysis* report may be viewed at www.prc.gov.

 

*The Postal Regulatory Commission is an independent federal agency that provides regulatory oversight over the Postal Service to ensure the transparency and accountability of the Postal Service and foster a vital and efficient universal mail system. The Commission is comprised of five Presidentially-appointed and Senate-confirmed Commissioners, each serving terms of six years. The President designates the Chairman. In addition to Chairman Michael Kubayanda, the other commissioners are Vice Chairman Ann Fisher and Commissioners Mark Acton, Ashley Poling, and Robert Taub. Follow the PRC on Twitter: @PostalRegulator and LinkedIn.*

Financial Analysis Report 5.18.22 FINAL_1.pdf(200.76 KB)
                            -         PRC Fiscal Year 2024 Budget Justification    

Skip navigation

PRESSRELEASE

**Media Contact**Gail Adams202.789.6829**gail.adams@prc.gov**

FOIA/Privacy ActEEO and No FEAR ActInspector General

Privacy PolicyVulnerability Disclosure PolicyIPv6 Supplemental  PolicyAccessibilitySitemap

newsroomcareersconsumer assistanceFAQ

POSTAL REGULATORY COMMISSION

901 New York Avenue NWSuite 200Washington, D.C. 20268202.789.6800