Canada Post reported a loss of $205 million before tax in the first quarter of this year due to a decline in mail volumes. This marks a $164 million decrease in revenue compared to the same period last year, with revenues falling by $181 million or 14.3%. The ongoing labor dispute with workers, partly attributed to the downturn in the parcel business, contributed to this loss.
The company mentioned that customer uncertainty continued to impact parcel results in the first quarter, leading to a 17.2% decline in parcel volume and a $79 million drop in parcel revenue. 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 immediately respond to CBC News’ request for comment.
Transaction mail revenue also decreased by 13.7% compared to the same period the previous year. Canada Post explained that these figures were influenced by the high volumes of letter mail during the first quarter of 2025 due to the federal election and strike backlog.
Direct marketing revenue saw a 13.4% decline, which was partly influenced by the backlog, making the first quarter of 2025 unusually strong. This news follows Canada Post’s record loss of $1.57 billion in 2025 before tax.
The postal service emphasized the necessity for a transition, stating that the weak numbers underscore the need for change. Canada Post is undergoing a transformation to enhance the postal service, support businesses, and promote national commerce, aligning with its financial self-sustainability mandate. As part of its restructuring, Canada Post aims to discontinue home delivery for certain addresses and expand the use of community mailboxes to save costs and reduce reliance on government funding.