Mail Delays, Big Losses, and a Holiday Crunch: USPS Faces Pressure as Thanksgiving Nears

U.S. Postal ServicePhoto: United States Postal Service

PHILADELPHIA, PA — The U.S. Postal Service will suspend regular mail delivery on Thanksgiving Day even as fresh financial data show the agency continuing to grapple with heavy losses and shrinking mail volumes. With the holiday rush beginning, USPS is leaning on expanded self-service tools and modernization efforts to keep customers moving.

All Post Office locations will be closed on Thursday, Nov. 27, with only Priority Mail Express operating that day. Retail counters and regular delivery will resume on Friday, Nov. 28. Customers unable to visit a Post Office can still access more than 2,600 self-service kiosks nationwide, many available around the clock, offering postage printing, stamps, package weighing, mailing options, and tracking.

USPS is also rolling out new modernization tools, including Rapid Dropoff Stations for pre-labeled packages, label-printing for QR-coded shipments, and Smart Lockers that allow 24/7 package pickup and drop-off.

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The push for convenience comes as the Postal Service posted another year of deep losses. USPS reported a net loss of $9.0 billion for Fiscal Year 2025, an improvement over last year’s $9.5 billion loss, according to newly released financial results. Total operating revenue ticked up 1.2 percent to $80.5 billion, driven by growth in USPS Ground Advantage and higher postage rates. But controllable loss—its preferred non-GAAP measure—widened to $2.7 billion, reflecting weaker-than-expected package revenue and rising compensation costs.

The agency cited transportation expense reductions of $422 million and a $1.1 billion drop in workers’ compensation expense, but those gains were overshadowed by a $1.7 billion increase in compensation and benefits and higher operating costs. First-Class Mail volume fell 5 percent, and Shipping and Packages volume dropped 5.7 percent.

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Postmaster General David Steiner said the results highlight a “significant systemic annual revenue and cost imbalance” and argued that USPS must pursue new revenue streams, greater efficiency, and public-policy reforms to stabilize its finances. Chief Financial Officer Luke Grossmann said the agency remains focused on expanding its package business and streamlining operations.

For now, USPS says it is preparing for the seasonal surge with an emphasis on speed, self-service, and customer flexibility. As Americans head into the holidays, the Postal Service is urging the public to make use of kiosks, automated dropoff stations, and Smart Lockers—especially during holiday closures and peak mailing periods.

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