Royal Mail owner, International Distribution Services PLC, on Thursday said it achieved its best Christmas operational performance for four years.
The group saw a marked improvement in performance in the three months to December 31 with Royal Mail meeting its customer commitment to deliver items posted by the last recommended posting dates in time for Christmas.
Group revenue was up by 9.8% on the previous year, with Royal Mail winning back customers following last year's industrial action.
IDS said for the first nine months of the year group revenue has risen by 3.8% with greater volumes in both Royal Mail and GLS.
But, this has been offset by increased costs, including pay increases and inflationary pressures.
IDS expects a second-half operating profit, on an adjusted basis, to broadly offset the £169 million operating loss in the first half, so guidance for the full year remains at about breakeven excluding voluntary redundancy costs.
Matt Britzman, equity analyst, at Hargreaves Lansdown said with strikes in the "rear-view mirror, Royal Mail is starting to deliver the goods once more."
"That’s welcome news for investors in its parent company, IDS, but we’re far from calling this turnaround a job well done."
Shares nudged higher on the news, up 0.5% at 247.50p.