But all this is not the postal service's biggest financial headache.
The majority of the service's nearly $16 billion loss last year stemmed from a 2006 law Congress passed forcing it to pay into future retiree health benefits, something no other agency does. That was $11.1 billion of the year's total loss.
An independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control. Many analysts lament that it has to manage 500,000 employees, a fleet of 212,000 vehicles and thousands of pieces of automated equipment but is not allowed to make what they say are typical business decisions.
"Congress should give the agency authority it needs to act like a real business," says Geddes, the Cornell professor, meaning respond to customer demand by controlling prices and adjusting levels of service when needed.
Postmaster General Patrick Donahoe announced a plan for that in February, saying he'd save perhaps up to $2 billion annually by cutting Saturday delivery of first-class mail starting in August but continuing six-day delivery for its growing package service.
Postal Service Loses Money Even As It Gains More Customers