Home Business Post is aiming for a "significant" increase in postage

Post is aiming for a "significant" increase in postage

So many letters are not sent today – via e-mail or chat, the communication is much faster. Nevertheless, letters remain an important part of everyday life. Your shipping will be more expensive.

Consumers will have to adjust to a much higher letter postage in the coming year. Post CEO Frank Appel said in Bonn with regard to the shrinking letter business for years: "We remain confident that we will see a significant increase in prices here."

He justified this with higher personnel costs and falling demand. In the first nine months of 2018, Deutsche Post's letter volume fell by 4.4 percent to around 13.06 billion units in the Federal Republic of Germany compared with the same period of the previous year.

By the end of November, the Post Office is yet to send data to the Federal Network Agency, so that the authority sets a price range for the letter postage. The new prices could then apply from the spring.

Currently, a standard letter in Germany costs 70 cents. The last price increase was 2016, when a shipment was 8 cents more expensive. Originally, the current tariff should only apply until the end of 2018. After internal turbulence including profit warning in the summer, the Bonn-based company did not provide the regulatory authority with the requested data. As a result, the network agency put the approval process on hold – from the planned increase in postage to January was initially nothing.

Appel did not want to say anything about the new postage for a standard letter. This is a decision of the Federal Network Agency, which sets a price, said the manager.

The CEO also presented business figures for the third quarter. The letter and parcel business (Pep) was in the red – mainly because the company is sending officials from its time as a state-owned company into early retirement for a lot of money. The conversion costs struck alone in the summer quarter with 392 million euros to book. Appel was nevertheless optimistic – the measures in the parcel and letter business were slowly gaining momentum and had a positive effect.

It went well in the express and freight sectors. However, the overall numbers were moderate: In the third quarter, sales rose by 1.4 percent year-on-year to around 14.8 billion euros. All in all, the Group earned just under 146 million euros – 77 percent less than a year earlier. The stock market took the numbers but positive, the last badly battered post-stock moved slightly. Reason: The numbers were probably not as bad as feared by financial players.

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