Postal Service tallies $5.1B loss even as revenues rise

WASHINGTON (AP) — The Postal Service is reporting a $5.1 billion loss last year – but that's a slight improvement over the previous year.

The loss reflects continued erosion in the delivery of first-class mail as well as expensive mandates for funding retiree health care.

There was good and bad news in the Postal Service's year-end results. Revenues were up, and it made an operating profit of $1.2 billion, reflecting continued growth in its package-delivery business.

But a special rate surcharge is set to expire next year, which promises to cut revenues by $2 billion annually, and volume of mail delivery should continue to shrink. Expenses continue to rise despite slower mail delivery.

The service is still seeking relief from the mandate to "pre-fund" retiree health benefits.