First quarter results from the United States Postal Service (USPS) show that the mailer has improved financially compared to last year.
The mailer's losses narrowed by just under $1 billion to $18.4 billion, indicating that the service is beginning to show signs of recovery following the recession.
Revenues obtained from commercial direct mail campaigns were also reported to be $4.7 billion down from $5.1 billion.
USPS officials noted that the fall was down to current "economic drivers that significantly affect mail volumes", with the service expected to continue to pick up now that the country has exited recession.
John Potter, the postmaster general, said: "In spite of the financial challenges we face today, Postal Service employees never lose sight that customer service is our top priority.
"On-time delivery performance for single-piece overnight First-Class Mail held at 96 percent for the fifth straight quarter. It's a tremendous result and we are proud to provide the highest levels of service to our customers."
In a recent interview aired on video streaming site YouTube, president Barack Obama ruled out any plans to privatize USPS, as he said that a service which was dedicated to consumers is what is needed.