Canadian consumers should prepare for higher mailing costs as Canada Post confirms stamp price increases are likely coming in 2026. The national postal service faces mounting financial pressures with pre-tax losses approaching $1 billion this year alone.
Financial Crisis Deepens at Canada Post
According to documents obtained by Blacklock's Reporter, Canada Post has recorded pre-tax losses of $989 million to date this year, already surpassing the $841 million in losses for all of last year. The Third Quarter Financial Report indicates this year's losses are expected to be the most significant in Canada Post's history.
The postal service acknowledged that despite recent rate increases, current pricing remains "underpriced" for sustainable operations. Over the past 18 months, the cost of mailing a domestic letter has already jumped 35%, from 92 cents to $1.24.
Government Intervention Prevents Insolvency
Canada Post would already be effectively insolvent without substantial government support. Management revealed the corporation required a $1-billion line of credit approved by cabinet on January 24, 2025, to maintain operations.
The financial report stated clearly: "Had it not been for the government funding, the corporation would be effectively insolvent." The situation worsened when Canada Post repaid $500 million in maturing debt in July, increasing the need for financial support from its sole shareholder, the Government of Canada.
Multiple Factors Driving Financial Woes
Several challenges contribute to Canada Post's financial predicament. Management cited a long-term decline in letter mail revenue and increased competition from private courier services as primary factors.
"Private sector competitors have almost completely taken over in Canada, especially in lucrative high-density urban and suburban areas," the report noted. "International and local courier companies offer easy to access, quick, inexpensive and reliable daily and overnight delivery services."
Additional financial pressure comes from continued labor uncertainty and impacts from the national strike that began on September 25. The postal service is currently navigating its busiest season with Christmas mailings while managing these significant operational challenges.
Canada Post is on track to post its eighth consecutive year of losses, with management warning that significant financial pressure will persist through the remainder of 2025.
