The U.S. Postal Service reported a $1.9 billion loss for its fiscal second quarter, compared with a $1.3 billion loss in the previous quarter, the New York Times reported Friday.
The service attributed the loss for the quarter ended March 31 to a continued decline in mail volume and a 2006 Congressional mandate to pay $5.5 billion into a health fund for future retirees, the Times reported.
Last year, the agency defaulted on two payments to the health fund and has said it will not be able to make payments this year due to worsening finances, the Times said.
The Postal Service’s plan to eliminate Saturday delivery and potentially save $2 billion a year was scrapped last month after its board said the agency does not have the authority to make the cut.