Canada Post has reported a loss of $205 million before tax in the first quarter of this 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. Revenues also saw a decline of $181 million, representing a 14.3% decrease year-over-year.
The company attributes part of this loss to an ongoing labor dispute with workers, which has impacted its parcel business. Canada Post mentioned that uncertainty among customers has affected parcel results in the first quarter. Parcel volume decreased by 17.2%, with seven million fewer parcels delivered compared to the same period in 2025, resulting in a $79 million revenue drop.
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 yet responded to CBC News’ request for comment.
Transaction mail revenue also decreased by 13.7% compared to the previous year, but Canada Post explained that these figures were influenced by unusually high letter mail volumes in the first quarter of 2025 due to the federal election and strike-related backlog.
Direct marketing revenue saw a 13.4% decline, partly due to the backlog that boosted performance in the first quarter of 2025. These results follow Canada Post’s record loss of $1.57 billion in 2025.
Canada Post emphasized the need for a transition in light of these weak financial numbers. The company stated that it is undergoing a critical transformation to enhance its services, support businesses, and achieve financial self-sustainability. As part of this restructuring, Canada Post plans to discontinue home delivery to certain addresses and expand the utilization of community mailboxes to save costs.
