Post office reports $2.4 billion quarterly loss - washingtonpost.com

The U.S. Postal Service lost $2.4 billion in the quarter that ended June 30 and forecasts a $7 billion loss for the fiscal year, according to figures released Wednesday. Mail volume dropped 12.6 percent over a nine-month period, continuing a sharp decline fueled by the economic recession that began in 2007 and by wider use of the Internet.

Though attention in recent months has focused on the potential closure of hundreds of post offices or the elimination of Saturday mail delivery to narrow the budget gap, most of the Postal Service's financial woes are tied to labor costs, especially billions of dollars in required payments to prefund future retiree health benefits. The cost of funding current and future retirees is likely to top $7 billion this fiscal year...