Canada Post has 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, when the corporation recorded a $41 million pre-tax loss. Revenues also dropped by $181 million, a 14.3% decrease year-over-year.
The loss is partly attributed to an ongoing labor dispute with workers and a downturn in the parcel business, according to Canada Post. The company delivered seven million fewer parcels in the quarter compared to the same period in 2025, resulting in a 17.2% decline in volume and a $79 million drop in parcel revenue.
A ratification vote on the collective agreement between Canada Post and its workers is currently ongoing and expected to conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, has not provided immediate comment.
Transaction mail revenue saw a 13.7% decline compared to the same period the previous year, with the 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 fell by 13.4%, with the backlog influencing the strong performance of the first quarter of 2025. This news follows Canada Post’s record loss of $1.57 billion in 2025.
Canada Post emphasized the necessity for a transition, stating that the weak numbers highlight the need for change. The corporation plans to move away from relying on government financial support and aims to end home delivery to certain addresses, expanding the use of community mailboxes to save costs.