Sweden’s Postnord could raise postage price after record losses

Sweden’s Postnord could raise postage price after record losses
Photo: Emil Langvad/TT
The number of letters sent via Postnord in Sweden fell by a record amount in the second half of 2018.

“We have never had a greater reduction in letter volumes than in the second half (of 2018), both as a proportion of overall volume and in absolute numbers,” Postnord director of communications Thomas Backteman told Svenska Dagbladet.

The full extent of the loss will not be presented until February, but the large drop in numbers has already prompted Postnord CEO Håkan Ericsson to contact Minister for Housing and Digital Development Peter Eriksson to appeal for a change to the law on letter postage prices.

In a letter dated January 10th, Ericsson suggested that the company could reach the end of the road as early as this year.

“With this letter, I want to inform the responsible minister and government office that Postnord, in the autumn of 2019, will need to raise postage by 1 krona in order to conduct its societal function with financial viability,” he wrote in the letter according to Svenska Dagbladet’s report.

“Such an increase would, according to Postnord’s assessment, be in breach of the price cap in the [current] postal regulation,” the letter also notes.

READ ALSO: Postnord to raise prices over Christmas period

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