The U.S. Postal Service reported a $2.1 billion net loss in the most recent quarter, a $573 million increase in losses from a year earlier, driven by less mail being delivered as electronic means replace the traditional stamp and envelope.

“The growth in our lower-margin package business is not sufficient to make up for the accelerating mail volume declines,” said Postmaster General Megan Brennan. “Our financial situation is serious, but solvable. The continuation of aggressive management actions, and legislative and regulatory reform, will return us to financial stability and enable the Postal Service to maintain the long-term affordability of mail, invest in America’s mailing and shipping industry, and best serve the American public.”