Royal Mail’s profit ambitions look lost in the post backlogs | Business

The number of Royal Mail delivery offices facing delays and backlogs has almost quadrupled in the past couple of weeks, JP Morgan thinks. The bank’s analysts think that, of Royal Mail’s 1,200 or so delivery offices, 77 have “material difficulties with service levels”, compared with 20 at the end of last year.

Omicron is likely to be responsible for some of that, keeping up to a fifth of its posties and sorters at home. JP Morgan thinks that Royal Mail’s “relatively generous sick pay” means that this is probably a “larger issue” than at other parcel delivery groups.

It is all likely to cost Royal Mail money, the analysts expect. Extra overtime paid to those still working; more temporary workers to cover absentees; fines for