Japan Post has reported a ballooning operating loss in its mail business for fiscal 2023. The massive shortfall came as the use of domestic mail declined.
Japan Post’s operating loss grew to almost 90 billion yen, or over 580 million dollars, for the year that ended in March.
The figure was more than four times larger than the loss for fiscal 2022, which was the first time the postal business fell into the red since its privatization in 2007.
The use of domestic mail items including letters and postcards was down in the last financial year by nearly half from the peak in fiscal 2001. Rising transportation costs also dented margins.
Japan Post is trying to improve its finances by raising postal rates from October. Standard-size mail will get a 30 percent price hike.
The communications ministry says the changes will put the mail business into the black in fiscal 2025. But the ministry adds that it is expected to fall back into the red the following year.