OTTAWA — As Canadians continue to abandon traditional mail, Canada Post reported a $205-million pre-tax loss in the first quarter of this year. That is $164 million more than the $41-million loss reported by the beleaguered crown corporation in the first quarter of 2025.
In a press release issued Friday, Canada Post said revenue fell by $181 million in the first quarter of 2026 compared to the same period last year, a 14.3% drop. The corporation blamed this latest downfall on declining volumes across all business sectors, pointing to Canada Post's lingering labour uncertainty as a driver of the downturn.
“Canada Post has begun a critical transformation that will strengthen the postal service, better support businesses and enable national commerce, while helping the Corporation meet its dual mandate of delivering for all Canadians in a way that is financially self-sustainable,” Canada Post said in their press release. “The multi-year transformation is essential for the company to move away from taxpayer-funded cash injections.”
Labour issues causing devastating uncertainty
Canada Post has spent the past two-and-a-half years locked in a prolonged bargaining quagmire with the Canadian Union of Postal Workers (CUPW) and their 55,000 members. While the two sides are currently in an uneasy truce as members vote on a tentative deal with a ratification window set to close on Saturday, the threat of future disruptions is giving pause to the corporation's action-weary customers.
“This uncertainty for customers continued to weigh on parcels results in the first quarter, with revenue down by $79 million compared to the same period of the prior year,” Canada Post said. “Volumes and revenue also declined for the transaction mail and direct marketing lines of business.”
A poll commissioned last year by the Canadian Federation of Independent Business (CFIB) showed a majority of small business owners are prepared to stop using Canada Post altogether due to the service's unreliability and uncertainty over future labour action. During the 2024 postal strike — which halted mail delivery across the country from Nov. 15 to Dec. 17 — the CFIB said 13% of small businesses stopped using Canada Post altogether, with many more expected to find more reliable alternatives if CUPW members hit the picket lines again. According to the CFIB, that 2024 strike cost small businesses upwards of $100 million per day.
