UPDATE: Australia Post has just announced its first profit in three years, driven by a record surge in parcel deliveries. The mail service reported a pre-tax profit of $18.8 million for the fiscal year ending in 2025, a remarkable turn from last year’s loss of $88.5 million. However, the company’s letter business continues to struggle, suffering a staggering $230 million loss.
The latest results, released on Friday, indicate that while Australia Post thrived with parcel deliveries peaking at 102.8 million during the Christmas period, its traditional letter service is in “permanent decline.” The decline was somewhat mitigated by the influx of election-related mail, but the overall volume of letters decreased by 5.4 percent to 1.66 billion.
Australia Post’s Chief Executive, Paul Graham, stated, “Our letter service is in permanent decline and we don’t expect it will ever return to profit.” He confirmed that the postal service will likely need to raise postage prices again to counteract the losses, following a 30-cent increase implemented in April 2024.
In a shocking development, just days prior to the profit announcement, Australia Post suspended parcel deliveries to the United States in response to new tariffs. This unexpected move has left many customers seeking clarity on future shipping options.
Despite the challenges, the company reported a 2.9 percent increase in revenue from parcels and services, reaching $7.64 billion. The domestic growth in parcel volumes, which rose by 2.6 percent, comes even as global competitors like Amazon intensify their presence in the Australian market.
To enhance its operations, Australia Post invested $371.9 million this year in fleet upgrades, technology, and new facilities, including a parcel-processing center at Melbourne Airport and a delivery center in Blacktown, NSW. These investments are part of the company’s strategy to remain competitive amid fierce market rivalry.
Graham cautioned that complacency is not an option. “Competition in the parcels market remains fierce, with global online marketplace retailers ramping up their presence in Australia,” he noted, highlighting the broader challenges faced by postal operators worldwide.
As Australia Post navigates these significant changes, all eyes will be on further announcements regarding postage fee adjustments and operational strategies in the coming months. The future of mail services in Australia hangs in the balance as both consumers and businesses await clarity on pricing and delivery options.
With the landscape shifting rapidly, stakeholders are urged to stay informed about the evolving situation at Australia Post.
