Canada Post has reported a pre-tax loss of $205 million in the first quarter of the year due to a decrease in mail volumes. This marks a $164 million drop in revenue compared to the same period last year, when the corporation recorded a $41 million pre-tax loss. Revenue also declined by $181 million, a 14.3% decrease year-over-year.
The loss is partially attributed to an ongoing labor dispute with workers, impacting the parcel business. The company experienced a 17.2% decline in parcel volume, delivering seven million fewer parcels compared to the same period in 2025, resulting in a $79 million revenue decrease from parcels.
A ratification vote on the collective agreement between Canada Post and its workers is currently ongoing and will conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, has not responded to CBC News for comment.
Transaction mail revenue decreased by 13.7% compared to the previous year, influenced by high volumes of letter mail in the first quarter of 2025 due to the federal election and strike backlog.
Direct marketing revenue also saw a 13.4% decline, impacted by the backlog from the first quarter of 2025. This news follows Canada Post’s record loss of $1.57 billion in the previous year before tax.
Canada Post emphasized the necessity for a transition, highlighting the need to move away from government cash injections. The company is planning to discontinue home delivery to certain addresses and expand the use of community mailboxes to enhance financial self-sustainability.
The corporation aims to strengthen its service, better support businesses, and promote national commerce through this transformation. The ultimate goal is to fulfill its mandate of delivering for all Canadians in a financially viable manner.