Christmas parcels a gift for Aust Post as letters slow
· Michael West
Posties delivered a record 3075 parcels every minute during their Christmas run, driving a modest profit for the nation’s mail service as Australians send fewer letters.
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Australia Post delivered 111 million parcels during the November and December 2025 peak, with the record haul pushing a $50.4 million pre-tax half-year profit.
More than 283 million parcels were delivered in the six months to December 31, an increase of 5.1 per cent compared to the half-year to December 2024.
Australia Post delivered a record 3075 parcels every minute during the Christmas period. (Mick Tsikas/AAP PHOTOS)With $5.06 billion in revenue, profit was down $198.7 million from its previous half-year results, which the company said reflected strategic investment decisions to remain competitive in a tight market.
The business may be set to record a loss in 2025/26, group chief executive and managing director Paul Graham warned.
Australia Post was investing in the future by streamlining operations, upgrading legacy facilities and technology.
The business spent $219.9 million on facilities, retail formatting, fleet, technology and regional expansion.
Australia Post is aiming to remain relevant for generations to come, CEO Paul Graham says. (Mick Tsikas/AAP PHOTOS)“These are conscious choices,” Mr Graham said in a statement.
“By fighting hard and planning for the future now, we’re building a modern, sustainable Australia Post that will continue to serve all Australians for generations to come.”
The letters service posted a loss of $2.1 million, a slightly improved outcome due to a 20c increase on stamps from July 2025.
Letters have long been declining, with volumes at the lowest level in nearly a century.
Letter delivery is costing more as the amount of snail mail slows to a trickle. (Dan Himbrechts/AAP PHOTOS)Australia Post lodged a draft price notification with the consumer watchdog in January to raise the price of stamps from $1.70 to $1.85.
The proposed increase would take effect from mid to late-2026 to offset the ongoing losses.
Fewer than three per cent of letters were sent by individuals, with most mailed by government agencies and businesses.
Australia Post estimated the price rise would equate to less than $1 per year for households.