The Post Office has been operationally profitable since October, 2012. In fiscal 2013 it had an operating profit of $623 million. In the first quarter of 2014 it showed a profit of $765 million. Letter volume has made a modest comeback as the economy has gotten a little better but there has been tremendous growth in parcel delivery, up over 14% last quarter. The internet has hurt first class mail volume but online shopping has more than offset the lost revenue. What's killing the PO is the 5.6 billion it has to pre fund every year. That plus the billions in excess it has been forced to pay into its civil service and FERS retirement accounts. Take away the forced pre funding of retiree health benefits and there would be no problems.