Postmaster General John Potter announced the results at the Postal Service's board of governors meeting Friday.
Potter said measures taken to minimize the loss included reducing the number of employees by 23,000 through attrition, trimming 77 million work hours and postponing a number of program expenditures.
The Postal Service expects net income of $600 million for its 2003 fiscal year. Revenue is projected to grow to $70.4 billion, a 5.9% increase from an estimated $66.5 billion in revenue in fiscal year 2002.
Separately, the Postal Service announced its board of governors approved the filing of its first "Negotiated Service Agreement" (NSA) pricing cases with the Postal Rate Commission on an experimental basis. The NSAs are among proposed pricing flexibility initiatives for businesses included in the Postal Services' Transformation Plan.