First loss in 30 years for Australia Post

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Australia Post’s steady decline in its mail services has hit hard, with the postal service suffering a loss of $222 million for the 2014/15 financial year – its first in more than 30 years.

The after tax loss comes after the postal service reported a $116.2 million profit a year ago, but the continuing decline in letter volumes has taken its toll.

Australia Post has reported a drop of 7.3% in letter volumes, with the mail service losses jumping further to $381 million in the face of the growth of digital services drawing Australians away from the traditional postal services.

In contrast to the letter service, Australia Post’s parcel service was one bright spot, with parcel revenue rising 3.6% for the full year to $3.21 billion – contributing more than half of the group's revenue of $6.37 billion.

Announcement of the losses has prompted comment from the union representing postal workers – the Communications Workers Union – that the loss highlights the need for reform of the postal service – without the need for job losses.

Union national secretary, Grey Rayner, says reform can be done “sensibly and without forced job losses,” and “it is abundantly clear that the letter side of the business cannot be profitable in its current form.”

“The very encouraging part of these results is the parcel side of the business, which is a huge growth area and will see substantial jobs growth in coming years.

“Australia Post is in its 207th year - its history is one of change and adaptation.

“The digital disruption to letter volumes we are seeing now is nothing new to Australia Post.”

“This Union was working with Australia Post when it was horses and carts – our members have transformed it from a network of telegraph wires to one of fibre optics and modern precision logistics.

“We are committed to partnering with Australia Post to transform the business again because that’s the only way to guarantee secure, quality jobs for our members and a reliable, useful service for all Australia.”