Canada Post has reported a $205 million pre-tax loss in the first quarter of this year due to a decline in mail volumes. This represents a $164 million drop in revenue compared to the same period last year, where the Crown corporation recorded a $41 million pre-tax loss. Revenues also decreased by $181 million, or 14.3%, year-over-year in the first quarter.
The loss is partly attributed to an ongoing labor dispute with workers, impacting the parcel business of the Crown corporation. Canada Post stated that uncertainty among customers has continued to affect parcel results in the first quarter.
In the quarter, the company delivered seven million fewer parcels compared to the same period in 2025, resulting in a 17.2% decline in volume and a $79 million revenue drop from parcels. A ratification vote on the collective agreement between Canada Post and its workers is currently underway and will conclude on Saturday.
Transaction mail revenue also saw a 13.7% decrease compared to the same period the previous year. However, these figures were influenced by high volumes of letter mail during the first quarter of 2025 due to the federal election and a strike backlog.
Direct marketing revenue experienced a 13.4% decline, which was partially due to the backlog effect from the strong first quarter of 2025. These financial challenges follow Canada Post’s record loss of $1.57 billion in 2025.
The postal service highlighted the necessity for a transition to address the weak numbers. Canada Post emphasized the need to move away from relying on government cash injections by restructuring, which includes ending home delivery to some addresses and expanding the use of community mailboxes to save costs and become financially self-sustainable.
