U.S. Postal Service Loses $3.2 Billion in First Quarter 2012

The USPS said its loss widened to $3.2 billion in the first three months of 2012 and repeated on Thursday its warning that it will likely default on payments to the federal government unless Congress passes legislation offering some relief.

The agency, which does not receive taxpayer funds and has been losing billions each year as Americans communicate online, said it lost $2.2 billion in the same period in 2011.

Much of the loss came from setting aside funds for retiree health benefits, which is required by law. Mail volume fell 4.1 percent to 39.5 billion pieces from a year ago.