WASHINGTON—The U.S. Postal Service is increasing the pressure for dropping Saturday home delivery as it seeks to fend off massive financial losses.
Postmaster General John Potter, who has a speech set for later today on the future of his agency, will also raise the likelihood of higher postage rates.
The agency was $297 million in the red in period from October through December, usually its best season because of holiday mailings.
The post office’s problems stem from a sharp decline in the number of items mailed, resulting from the recession and the movement of things like bills and bill-paying to electronic communications.
Last year the agency handled 177 billion items, down from 213 billion in 2006—and there is little likelihood of an increase in the future.
The Postal Service has previously proposed eliminating delivery six days a week, but got a cold reception in Congress. The renewed effort comes with a series of consultant reports supporting that idea, as well as changes in the work force and the number of offices.
The post office does not receive a taxpayer subsidy for its operations, and officials see little chance of Congress approving such a payment.
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