Canada Post has reported a $205 million pre-tax loss in the first quarter of this year due to a decrease in mail volumes. This marks a $164 million decline in revenue compared to the same period last year when the corporation posted a $41 million pre-tax loss. Revenues also dropped by $181 million, representing a 14.3% decrease year-over-year.
The company attributed part of this loss to an ongoing labor dispute with workers, affecting its parcel business. Canada Post stated that the uncertainty for customers continued to impact parcel results in the first quarter. During this period, the company delivered seven million fewer parcels, a 17.2% decline in volume, 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, did not immediately respond to a request for comment.
Transaction mail revenue decreased by 13.7% compared to the same period the previous year. Canada Post noted that these figures were influenced by high volumes of letter mail during the first quarter of 2025 due to the federal election and the backlog from the previous year’s strike.
Direct marketing revenue also saw a 13.4% decline, which was partly affected by the backlog from the previous year. These results follow Canada Post’s record loss of $1.57 billion in 2025.
The postal service emphasized the necessity for a transition in light of the weak financial performance. Canada Post aims to move away from government cash injections by restructuring, including ending home delivery for certain addresses and expanding the use of community mailboxes to cut costs.