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 represents a $164 million drop in revenue compared to the same period last year when the corporation recorded a $41 million pre-tax loss. Revenues also declined by $181 million, or 14.3%, year-over-year.
The loss is partly attributed to an ongoing labor dispute with workers, impacting the parcel business. Canada Post mentioned that customer uncertainty continued to affect the parcel results in the first quarter.
During this period, the company delivered seven million fewer parcels, marking a 17.2% volume decline compared to the same quarter in 2025. As a result, revenue from parcels decreased by $79 million.
A ratification vote for the collective agreement between Canada Post and its workers is currently ongoing and is expected to conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, has not responded to CBC News’ request for comment.
Transaction mail revenue saw a 13.7% decrease compared to the previous year, with figures impacted by high volumes of letter mail in the first quarter of 2025 due to the federal election and a strike backlog.
Direct marketing revenue also declined by 13.4%, influenced by the backlog in the first quarter of 2025.
Following its record loss in 2025, Canada Post emphasized the need for a transition to address the weak financial performance. The company aims to move away from relying on government funding through a restructuring plan that includes ending home delivery to certain addresses and expanding community mailboxes to save costs.
