Royal Mail has handled a record 496m packages in the three months to end of December and are to retain all 10,000 Christmas staff on a temporary basis.
In the peak Royal Mail said they were hitting 11.7m packages each day during the peak of the Christmas season.
Royal Mail chairman Keith Williams said that they did have some issues in delays and let some customers down.
Williams said, “Given these record volumes, we recognise that at times our service during the period was not always as we would have wished.
“But, thanks to the efforts of our team, the retention of around 10,000 of the 33,000 flexible workers from the Christmas peak, and the introduction of new processes, we have been making encouraging progress.”
Despite the challenges they have from the pandemic Williams said that they are “resolutely focused on delivering a comprehensive service.”
Royal Mail have seen huge profits from the surge in online shopping since the pandemic started, and they are expecting operating profits “well in excess” of £500m, after a 14% spike.
Analysts had predicted a £400m profit, and shares rose by almost 12%, the highest since October 2018.
Neil Wilson, chief market analyst at Markets.com said, “Royal Mail raised its profit guidance due to a surge in parcel deliveries, with volumes up 30% year on year.
“The company for long in the doldrums finally seems to be getting its house in order and is now a structural winner both from the pandemic and from a decade-long shift towards online shopping.
“E-commerce is key, but delivering PPE, home testing kits and vaccination letters has also helped.”