Australia Post has reduced letter deliveries to every second day as it adapts to falling mail volumes and focuses on its expanding parcels business. The change is intended to make the letters service more sustainable, while the organisation faces pressure from global e-commerce competitors and rising operating costs.

Letter volumes fell by nearly 15 per cent to 1.42 billion in the year to 30 June, while the new delivery model saved A$188.3 million and a stamp-price rise to A$1.70 reduced letter-service losses to A$63.2 million. Parcels and services revenue reached a record A$8.01 billion, but Australia Post’s A$31.8 million pre-tax profit relied on A$140 million from property sales; it plans further divestments, investment in parcel facilities and A$40.5 million for fleet electrification.