Royal Mail’s chief executive, Alistair Cochrane, expressed regret over the company’s recent performance as he outlined ongoing efforts to overhaul the postal service ahead of the year-end peak season. Speaking about the latest delivery figures for the period ending June 2026, Cochrane highlighted modest improvements but acknowledged the service still fell short of regulatory targets.
In the first quarter of the 2026-27 financial year, Royal Mail reported that 85 percent of first-class letters were delivered within one day, an increase of 9 percentage points from prior results but still below the 90 percent benchmark set by regulator Ofcom. Similarly, 91 percent of second-class mail reached its destination within three days, marking a 2 percentage point rise but remaining short of the 95 percent target.
“I want to acknowledge Royal Mail’s performance has not been good enough and to say sorry,” Cochrane said. “We want to do better and we are determined to do so.” He attributed the challenges to shifting industry demand, noting a marked 75 percent decline in letter volumes alongside rising parcel deliveries. In response, the company is implementing what Cochrane described as “the biggest transformation in generations,” revising working arrangements and operational models.
Changes have already been rolled out in approximately 70 percent of Royal Mail’s sites, with plans to expand the new framework to additional locations before Christmas. Although Cochrane did not commit to whether improvements would enable the company to meet performance targets during the critical holiday period, he emphasized Royal Mail’s commitment to its Universal Service Obligation, ensuring letters are delivered to every address at a uniform price.
Cochrane also stressed the firm’s focus on employee welfare, affirming that staff are employed under “proper contracts with holiday and sick pay,” a standard he implied is lacking elsewhere in the industry.
Business Minister Kate Dearden, whose responsibilities include postal services, concurred with the executive’s assessment, stating the quality of service has been insufficient.
The apology from Royal Mail’s chief executive follows a similar admission made in March by company owner Daniel Kretinsky, a Czech billionaire. However, concerns persist within the sector. Gary Sassoon-Hales, national chairman of Unite CMA—the union division representing postal managers—warned that the company’s slim profits of £5 million on £8.4 billion in revenue for the year to March indicate further reforms are likely, suggesting potential job cuts may be on the horizon. “It does not take a rocket scientist to work out what happens next: more jobs under threat,” Sassoon-Hales said.