Airlines face USD 300m in lost revenue if US Postal Service fails

FlyerTalk has reported America´s major airlines could lose over USD 300m in yearly revenue (from a USD 8.5bn budget) if the United States Postal Service were to become insolvent, the news source said.

According to a statement by the US Postmaster General, the mail service chartered by Congress could lose as much as USD 9 billion in fiscal year 2019, and 2020´s loss could approach USD 11 billion.

US Postal Service relies on the airlines to carry air mail. In addition to their contracts with FedEx, UPS and Kalitta Air, the mail is regularly carried aboard commercial carriers as well. The US Postal Service awards contracts every year to the major passenger airlines.