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Australia Post has cut its letter-postage losses in half as its parcel business helped send the carrier to a nearly $250 million first-half pre-tax profit.
The Commonwealth-owned postage service recorded revenue of $5.01 billion in the six months to 31 December 2024, up 6.3 per cent on the same period last year.
More than $4 billion in revenue came from parcels and services, helping AusPost to a $249.1 million profit before tax over the half, up from $33.6 million in 1H24. Australians have continued to send fewer letters, and on average receive two each week.
The volume of letters sent in Australia has continued its rapid descent.Credit: Jason South
But a $0.30 increase in the basic postal rate to $1.50 and modernisation reforms have helped cut letter business losses more than 54 per cent to $83.7 million for the half.
“As we are seeing globally, letters volumes are falling, and this is expected to continue at pace,” Australia Post chief executive and managing director Paul Graham said.
The Australian Competition and Consumer Commission is considering an AusPost proposal for a further $0.20 hike, but the service isn’t ever expected to return to profitability.
Parcels on the other hand have boomed in the years after the COVID-19 pandemic, with ongoing living cost pressures pushing shoppers towards online discounts.
Australia Post’s parcels revenue was up $3.53 billion, more than 6 per cent on the equivalent half the year before.
Packages hit a record peak, with 102.8 million parcels delivered to customers in 2024, up 3 per cent on 2023.
An Australia Post survey found almost three in four Australians bought Christmas presents during the Black Friday sales weekend in November, which contributed to the record volumes.
AAP
