Royal Mail posted a loss of £ 65m in the first half, with the pandemic worsening the decline in mail volumes
- It does so despite a forecast sales increase of 8% to £ 5.6 billion
- Covid-19 has resulted in an increase in parcel shipping with more internet purchases
- The company hires 33,000 temporary workers to meet Christmas demand
Royal Mail is expected to post a £ 65m loss in the first half this week after the pandemic exacerbated a drop in letter volumes.
Analysts predict the postal service will be in the red in the six months to September, compared to a profit of £ 110 million for the same period last year.
This was despite a projected 8 percent increase in sales to £ 5.6 billion, compounded by the record number of parcels sent, leading to more internet purchases due to the coronavirus crisis.
Royal Mail is expected to post a £ 65m loss in the first half this week after the pandemic exacerbated a drop in mail volumes
The company is gearing up for the biggest Christmas ever and hiring 33,000 contract workers to meet demand.
However, the growing parcel volume has so far not been able to keep pace with the decline in letters. Royal Mail warned that the average number of items delivered per address has halved from two to one.
The company has called for a rethink about its “universal service obligation” to deliver letters anywhere, six days a week at fixed prices.