Postal operators struggle to break even despite parcel growth

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTEric KulischThu, July 16, 2026 at 8:10 PM GMT+2 4 min readPostal operators worldwide saw modest revenue growth in 2025, with average revenue rising by 1.4%, mostly driven by parcel business, according to preliminary results published on Thursday by the International Post Corp.Letter mail has continued to decline in all markets worldwide. Over the past three years, postal operators' revenue growth has come almost entirely from parcels rather than mail. Profitability remained under pressure as fuel and labor costs squeezed margins, offset by parcel revenue from e-commerce and cross-border delivery. Despite higher parcel traffic, margins in this category remain narrow or negative, the IPC, a service provider to the postal sector, said.Postal revenue growth slowed last year from 2.2% in 2024 and 1.5% in 2023."E-commerce continues to drive demand, but volume growth no longer guarantees profit, given the high competition and low margins. Posts are pursuing their transformation to increase competitiveness in delivery markets. Furthermore, global cooperation is more essential than ever for posts to respond to increasing regulatory pressure," said IPC Chief Executive Officer Holger Winklbauer, in a news release.E-commerce remains the sector's main growth driver, with online retail and cross-border shopping increasing parcel flows. In Asia-Pacific, parcel growth is further supported by urbanization and a growing middle class. The financial squeeze on postal operators has continued in 2026, based on financial reports from operators. Posten Bring, the state-owned postal logistics provider in Norway, on Wednesday said revenue in the first half of 2026 increased 0.9% compared to the same period last year, while adjusted operating profit fell 19.1% to $40.3 million. Posten Bring, which handles mail and parcel delivery across the Nordic region, said making a profit is proving difficult because of rising costs and price pressure from intense competition even as parcel volumes continue to grow. Mail volume decreased 9.4% in the first six months, resulting in a 2% decline in mail revenue.Parcel growth is strongest in Sweden, Posten Bring said. It plans to open a new parcel terminal outside Stockholm next summer that will triple its current capacity in the country. The IPC said the introduction of additional regulatory and customs obligations in the United States and Europe during the past 12 months may lead to a slow-down of cross-border e-commerce and a reduction of overall volumes. It urged governments to make sure new rules are easily implemented in order to maintain parcel flows and help postal operators retain business. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info