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 represents a $164 million drop in revenue compared to the same period last year, with revenues falling by $181 million, or 14.3%.
The decline in performance is partially attributed to an ongoing labor dispute that has impacted the parcel business of the Crown corporation. Canada Post stated that the uncertainty faced by customers has continued to affect parcel results negatively in the first quarter.
During this period, the company delivered seven million fewer parcels compared to the first quarter of the previous year, resulting in a 17.2% decline in volume. Revenue from parcels also decreased by $79 million.
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 provided immediate comments on the situation.
Transaction mail revenue saw a 13.7% decrease compared to the same period last year. However, these figures were influenced by high letter mail volumes in the first quarter of 2025 due to the federal election and strike-related backlog.
Direct marketing revenue also experienced a 13.4% decline, with the backlog from the previous year impacting the results. These financial challenges follow Canada Post’s record loss of $1.57 billion in the previous year.
Canada Post emphasized the necessity for a transition to address the weak financial performance. The company aims to reduce reliance on government funding through restructuring, which includes ending home delivery to certain addresses and expanding the use of community mailboxes to cut costs.