Canada Post loses $205M in first quarter as mail volumes plummet
Revenue dropped 14.3 per cent. Labour uncertainty and competition from other carriers took a toll.
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Canada Post reported a $205-million loss before tax in the first quarter of 2026, a dramatic swing from the $41-million loss in the same period last year. Overall revenue fell 14. 3 per cent, or $181 million, compared to 2025.
The postal service blamed ongoing labour uncertainty throughout the quarter — employees were voting on tentative agreements with the Canadian Union of Postal Workers until May 30. That uncertainty pushed parcel customers to competitors offering more stability. Parcel revenue fell by $79 million, with volumes down by seven million pieces.
Letter mail revenue dropped 13. 7 per cent, while direct marketing revenue fell 13. 4 per cent.
Operational costs fell by $19 million due to lower outbound volumes, but labour costs rose from higher wages and four additional paid days. The Canada Post Group of Companies, including Purolator, recorded a $251-million loss before tax. The corporation has been receiving federal cash injections since 2025 to prevent insolvency — an arrangement it says must end.