Royal Mail misses delivery targets again but hails 'encouraging' signs
The struggling firm said it had improved its performance but missed regulator-set delivery targets.
Royal Mail has once again fallen short of its delivery goals for both first and second-class mail, though the company states it is making headway toward these objectives as its turnaround strategy progresses.
Between March and June, the postal service achieved next-day delivery for 85% of first-class mail, an increase from 76% during the same three-month period in 2025. However, this figure remains below the 90% target set by regulator Ofcom. For second-class mail, 91% was delivered within three days, also an improvement from the previous year but still short of Ofcom's 95% target.
Royal Mail described these outcomes as "encouraging and show that the work we are doing to improve the service is having an impact."
Owned by International Distribution Services (IDS), Royal Mail has contended with heightened competition in the delivery sector, a decline in letter volumes, and regulatory fines for failing to meet targets in recent years. Nevertheless, the company noted a significant rise in the proportion of first-class mail delivered next-day compared to the same period last year, and a slight improvement in second-class mail delivered within three days.
Chief operating officer Jamie Stephenson commented, "These results are encouraging and show that the work we are doing to improve the service is having an impact. First Class performance is well ahead of where we expected to be at this stage of our Improvement Plan, while Second Class is tracking in line with the plan."
Stephenson acknowledged that "more to do" remains, highlighting a £500 million investment plan over the next five years aimed at enhancing the company. This plan includes a commitment to achieve Ofcom's delivery targets by May 2027.
The postal service has faced years of criticism from politicians and the public regarding the sluggishness of its letter delivery. For the second consecutive year, Ofcom is investigating Royal Mail for failing to meet its delivery targets. Last October, the regulator imposed a record £21 million fine on the company for missing targets in 2024-25.
In March, postal workers across the UK informed the BBC that they were instructed to move or conceal mail from senior managers to create the appearance of meeting delivery targets. The company apologized to residents in Gloucester, where post was sometimes delayed for months, admitting its service there was "totally unacceptable." More recently, residents in Worcestershire voiced complaints about weeks-long postal delays, with some missing hospital appointments.
Royal Mail recently reiterated its aim to meet Ofcom's targets by May 2027 as part of a turnaround plan estimated to cost around £500 million over the next five years. "We know there is more to do," Stephenson stated. "We are investing £500 million over five years and making significant changes across our network... None of this progress would be possible without the continued hard work of our frontline colleagues, including through the recent extreme heat."
IDS was acquired in 2025 by Czech billionaire Daniel Kretinsky.