Aus Post sends 1bn fewer letters than 2008

THE nation's posties will deliver a billion fewer letters this financial year than they did five years ago.

But they're handling a lot more parcels as people do more shopping online, a parliamentary hearing has been told.

Australia Post chief executive Ahmed Fahour said on Tuesday 180 million fewer letters would be sent this financial year, that's a drop of a billion since the peak in 2008.

Mr Fahour said Australia Post had lost $190 million in its traditional mail business.

"This loss has been growing and will continue to grow as our customers shift from physical mail to digital communication," Mr Fahour told a senate estimates hearing in Canberra on Tuesday.

The government-owned enterprise had offset the fall in mail volumes with an increase in delivering parcels.

Mr Fahour said his organisation had double digit growth in delivering parcels within Australia during the festive period.

"This really reflects the ongoing and rapid rise of online shopping throughout Australia."

Australia Post had delivered 97 per cent of parcels through that peak holiday period.

"It is one of the better performance records over the years."

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