WASHINGTON (AP) - The U.S. Postal Service says it lost $1.3 billion in the first quarter of the new budget year, following record losses last year.

Officials say that in the three months ended December 31 there was continued growth in the agency's revenue from package delivery, including during a busy holiday season. And there was growth in political ad mailings due to the November elections.

But it wasn't enough to overcome business lost as customers moved more toward email, online bill paying and other internet services.

In a move to cut costs, the Postal Service had announced Wednesday that it plans to end Saturday mail deliveries in August, although it will continue six-day-a-week package delivery.