Canada Post has reported a $205 million loss before tax in the first quarter of this year, attributed to a decline in mail volumes. This loss represents a $164 million drop in revenue compared to the same period last year when a $41 million pre-tax loss was recorded. Additionally, revenues decreased by $181 million, marking a 14.3% decline year-over-year in the first quarter.
The decrease in revenue is linked to an ongoing labor dispute with workers and a downturn in the parcel business, as stated by Canada Post. The company saw a 17.2% reduction in parcel volume, delivering seven million fewer parcels compared to the same period in 2025, resulting in a $79 million revenue decline from parcels.
A ratification vote is currently underway on the collective agreement between Canada Post and its workers, set to conclude on Saturday. The Canadian Union of Postal Workers, representing the employees, has not provided immediate comments to CBC News.
Transaction mail revenue also saw a 13.7% decrease compared to the same period the previous year. However, Canada Post noted that these figures were affected by the unusually high letter mail volumes during the first quarter of 2025 due to the federal election and strike backlog.
The decline in direct marketing revenue by 13.4% in the first quarter of 2026 was also influenced by the backlog from the previous year, which had strong numbers in 2025’s first quarter.
After posting a record loss in 2025, Canada Post emphasized the necessity for a transition to address the weak financial performance. The postal service aims to move away from government cash injections by restructuring, including plans to end home delivery to certain addresses and expand the use of community mailboxes to save costs.
