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United Airlines will stop carrying U.S. domestic mail after June 30, after it failed to qualify for a contract renewal and declined a short-term contract extension.

United said it is the largest carrier of domestic mail and had opened up its network for domestic mail service.

In 1926, Walter T. Varney launched contract air-mail service between Pasco, Wash., and Elko, Nev., marking the birth of United Airlines, according to the carrier’s website.

United said it did not qualify for a five-year domestic mail contract renewal from the U.S. Postal Service based on its on-time domestic mail delivery performance from October through March. It decided not to take a contract extension through Sept. 30.

The airline will continue to carry international mail, which it said makes up most of its mail service in volume and revenue.

“This development highlights the fact that execution is critical in both the passenger and the cargo sides of the operation,” United told its employees. “We absolutely have to deliver on our promise of service to every customer.”

Some employees may be affected by the contract loss, but United said it is “premature” to say what the impact may be.

The next chance for United to bid for U.S. domestic mail service is 2011. Air-mail volumes at DIA have declined in recent years.

Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.

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