Canada Post has reported a $205 million loss before tax for 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 Crown corporation recorded a $41 million pre-tax loss. Revenues also declined by $181 million, a 14.3 percent decrease year-over-year.
The loss is linked to a 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, a 17.2 percent volume decline compared to 2025, resulting in a $79 million drop in parcel revenue.
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’ request for comment.
Transaction mail revenue fell by 13.7 percent year-over-year, partly due to high volumes of letter mail in the first quarter of 2025 related to the federal election and strike backlog.
Direct marketing revenue also saw a 13.4 percent decline, influenced by the previous backlog, which boosted the first quarter of 2025.
Following its record loss in 2025, Canada Post emphasizes the necessity for a transition. The postal service aims to move away from government cash injections by ending home delivery to some addresses and expanding community mailbox usage as part of its restructuring efforts.