Canada Post has reported a $205-million loss before tax in the first quarter of this year due to a decrease in mail volumes. This represents a $164-million revenue decline compared to the same period last year when the corporation posted a $41-million pre-tax loss. Revenues also dropped by $181 million, or 14.3%, year-over-year in the first quarter.
The decline in revenue is partly attributed to an ongoing labor dispute with workers, impacting the parcel business of Canada Post. The company stated that the uncertainty for customers continued to affect parcel results in the first quarter.
During the quarter, Canada Post delivered seven million fewer parcels compared to the same period last year, resulting in a 17.2% decline in volume. Revenue from parcels also decreased by $79 million as a consequence of this drop.
A ratification vote regarding the collective agreement between Canada Post and its workers is currently ongoing and is set to conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, has not yet responded to CBC News’ request for comment.
Transaction mail revenue fell by 13.7% compared to the same period in the previous year. However, these figures were influenced by unusually high volumes of letter mail in the first quarter of 2025 due to the federal election and the strike backlog from the end of 2024.
Direct marketing revenue declined by 13.4%, also impacted by the backlog effect in the first quarter of 2025. Canada Post’s weak financial performance underscores the need for a transition.
The postal service emphasized the necessity for a transformation to reduce reliance on government funding. As part of this restructuring, Canada Post plans to discontinue home delivery to certain addresses and expand the use of community mailboxes to achieve cost savings and financial sustainability.
