Australia Post set to lose $1.5 billion on letters

But what chief executive Ahmed Fahour has claimed as a triumph conceals the bare fact that our national carrier is still bleeding cash from its letters division.While total revenues were up 3 per cent to .6 billion in 2015-16 on the back of a parcels boom, Australia Post is set to lose .5 billion on letters over the coming five years as snail mail becomes more unpopular than ever.Letters declined by a record 9.7 per cent in 2015-16, bringing losses of 8 million. But a potential extra 0 million in losses was avoided by overhauling the division in January, when Australia Post unveiled its controversial new two-tiered pricing.Mr Fahour said that, before the reforms, the publicly-owned company had been on track to lose billion on letters in the five years to 2021.“This is a .5 billion turnaround in less losses to protect the taxpayer from the decline in this particular service usage,” he said.THE PARCELS BOOMdana.mccauley@news.com.au