Canada Post has reported a $205 million pre-tax loss in the first quarter of this year due to a decrease in mail volumes. This marks a $164 million decline in revenue compared to the same period last year when the corporation recorded a $41 million pre-tax loss. Revenues also dropped by $181 million, or 14.3%, year-over-year.
The loss is attributed in part to an ongoing labor dispute with workers, impacting the parcel business. Canada Post mentioned that customer uncertainty continued to affect parcel results in the first quarter.
During this period, the company delivered seven million fewer parcels, resulting in a 17.2% decline in volume compared to the same period in 2025. Parcel revenue decreased by $79 million as a consequence.
A ratification vote on the collective agreement between Canada Post and its workers is currently in progress and will conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, did not respond immediately to CBC News’ request for comment.
Transaction mail revenue saw a 13.7% decrease compared to the same period the previous year. However, Canada Post clarified that these figures were skewed due to high letter mail volumes in the first quarter of 2025 caused by the federal election and strike backlog.
The decline in direct marketing revenue by 13.4% was also influenced by the backlog, making the first quarter of 2025 notably strong.
Following its record loss in 2025, Canada Post highlighted the necessity for a transition. The postal service emphasized the need for change as it moves towards financial self-sustainability.
Canada Post is undergoing a critical transformation to enhance its services, support businesses, and facilitate national commerce. The company aims to reduce reliance on government funding by ending home delivery for some addresses and expanding community mailbox usage to save costs.