The head of Australia Post, Paul Graham, has made a stark prediction: the days of letter delivery may be numbered. According to Graham, as costs continue to rise and letter volumes fall, letter delivery is heading towards becoming a “sunset industry.” In an industry already under pressure, could this be the beginning of the end for one of Australia’s oldest services?
A Service in Decline
Australia Post’s half-yearly results paint a worrying picture for the future of letter delivery. In the second half of 2025, the number of letters delivered dropped by a significant 11.5%, totaling just 734.2 million letters. At the same time, parcel deliveries rose 5.1%, reaching 283 million. This shift highlights the growing importance of e-commerce and the decline in traditional letter-based communication.
Despite a 20-cent price hike on postage and a modest profit for the company, the letter delivery service still reported a $2.1 million loss. This loss is a clear indication that the traditional mail service is struggling to keep up with the rapid changes in communication and commerce.
The Global Perspective
Graham pointed to Denmark as an example of how extreme solutions are already being implemented. “Denmark fixed it because they don’t deliver any letters anymore,” he said, referring to Denmark’s decision to halt letter delivery altogether. While this may seem drastic, it’s a reality that some countries are already facing. As Graham put it, letter delivery is an issue with no simple fix, and Australia Post is bracing for what might be a similar fate.
What’s Next for Letter Delivery?
So, what could the future look like for Australia Post? Graham remains cautiously optimistic about discussions with the government, which has already allowed the company to deliver letters every second day as a part of recent reforms. He suggested that further reductions in delivery frequency could be on the cards if letter volumes continue to drop. If the numbers fall below 700 million, he believes it may be time to consider delivering letters just three times a week.
“The natural triggers are there,” Graham said to Yahoo Finance, hinting at potential adjustments in the coming years. While this doesn’t mean an immediate overhaul, it’s clear that Australia Post will have to adapt to meet the evolving needs of customers.
A Tough Road Ahead
While parcels continue to drive growth for the company, the letter delivery service remains a significant burden. For now, Australia Post is relying on its strong parcel business to support the letter service, but the question remains: how long can this continue?
Australia Post is facing an ongoing struggle to balance its role in delivering traditional mail with the demands of a rapidly changing market. As Graham noted, the letter delivery service may never return to profitability, and taxpayers may eventually bear the cost of maintaining a service that fewer Australians rely on.
