Australia Post chief Ahmed Fahour says the death of letter-writing is sending the postal service is careering towards its first full-year loss in more than 30 years.

Mr Fahour announced the group’s net profit this week, which has slumped 56 per cent in the six months to December compared with a year earlier, down to $98 million.

Fahour says AusPost will fall deep into the red in coming months, leading to its first loss for any financial year since 1982.

Mr Fahour says that while letters are dwindling to a trickle, the parcel business will help ward off extra competition.

The boss says offshore players are becoming increasingly competitive in the Australian market, evidenced by the recent attempt at a buy-out of Toll by Japan Post.

There are some industry experts who believe Australia Post should be sold off.

It would be in line with international counterparts - Japan Post will be privatised later this year and Britain’s Royal Mail floated in 2013.

Mr Fahour hopes the Federal Government will install reforms to bolster AusPost’s financial health.

“I think it is only a matter of time,” he told News Corp reporters.

“I’ve said we need answers this financial year. Nothing leads me to believe they are not listening.

“You can’t just keep going on about the situation in perpetuity. That is why we put a time limit on it.”

It is understood that Fahour will push for more flexibility on stamp prices, and will ask for official permission to introduce a “two-speed” mail service.