In FY 2016, the Postal Service generated its third consecutive year of Operating Income despite an increase in operating expenses and the expiration of the exigent surcharge in April 2016. Revenue from the Market Dominant and the Competitive products rate increases, the exigent price surcharge during the earlier half of the fiscal year, and the continuing growth in Competitive products volume contributed to a net operating income of $0.6 billion.1 This is $0.6 billion less than the net operating income of $1.2 billion recorded in FY 2015. When all adjustments are included, the net operating income of $0.6 billion becomes a total net loss of $5.6 billion, a deterioration of $0.5 billion compared to FY 2015. The increase in the total net loss is largely driven by a $1.5 billion increase in overall compensation and benefits costs and an increase in non-cash workers’ compensation expense of $0.9 billion caused by a decrease in the discount rate.
Read the full report. FY 2016 Financial Analysis Report