Canada Post reports $1.3B operating loss with declines in both letter and parcel revenue

Canada Post is reporting a $1.3-billion loss in operating expenses in its 2024 annual report.

The Crown corporation made up for some of those losses by selling off certain ventures, including its logistics business which it sold in January of last year.

Excluding tax — and accounting for its divestments — Canada Post's losses totalled $841 million last year. That's larger than the $748-million loss reported in 2023, and in 2022 when it lost $548 million.

The last time Canada Post made a profit was in 2017. Overall, the Crown corporation says it has lost $3.8 billion since 2018.

Canada Post said in a news release that volumes and revenues declined in both traditional letter and parcel delivery, and that the corporation faces stiff competition from private parcel carriers.

"Our current structure was built for a bygone era of letter mail — the status quo has led us to the verge of financial insolvency and is not an option. The need to change, respond to our challenges and secure this important infrastructure for the future is more urgent than ever before," CEO Doug Ettinger said in the news release.

Revenue from parcel delivery alone fell by $683 million compared to 2023, the report says.

Another looming strike

The corporation also said that the postal worker strike late last year contributed to a loss of $208 million. This latest annual report comes with another potential strike looming.

The last strike ended when the federal government ordered employees back to work under their existing contracts, which were extended until May 22 to allow the bargaining process to resume. 

Those contracts have ended, and the union is still in disagreement with the corporation on several issues, including worker pay, benefits, pensions and Canada Post's intent to hire part-time workers for weekend deliveries instead of paying overtime for weekend shifts.

The Canadian Union of Postal Workers issued a strike notice last week, but talks are ongoing.

CBC News has asked the union for a statement regarding the annual report and the negotiations.

Newly appointed Public Works Minister Joël Lightbound has given no indication that the government would intervene if another strike does occur.

"The priority now is for both parties to reach an agreement at the table. The best deals are made at the negotiation table, and we encourage both parties to continue negotiating," a spokesperson from Lightbound's office said in an email.

'I don't feel I can rely on Canada Post': Business owner

Canada Post's losses don't come as a surprise to Scott Wingfield. The Victoria native operates a small business shipping art products from local artists to customers across the country.

Wingfield said he used to rely heavily on Canada Post but has begun to shift away because the Crown corporation has become less reliable.

"I've relied on Canada Post for about 98 per cent of my business.… When the strike hit last time and it was over, I yanked most of my shipping. So I'd say about 60 per cent of my shipping now does not go through Canada Post." he told CBC News.

"I don't feel I can rely on Canada Post."

WATCH | How Canada Post lost $3B in six years: 

How Canada Post lost $3B in six years | About That

1 year ago

Duration 10:15

Canada Post has a monopoly on Canadian letter delivery. But financial reports show the Crown corporation lost $748 million in 2023 alone and is expected to run out of money by early 2025. Andrew Chang explains how - even when parcel delivery is at an all-time high - the company can’t catch a break, and what it means for your mail. CORRECTION (Nov. 12, 2024): An earlier version of this description said Canada Post lost $748 million in 2024. That number is the total losses before tax for 2023. According to Canada Post's most recent financial reports, it has so far lost $490 million in the first two quarters of 2024.

Marvin Ryder, a business professor at McMaster University, said financial losses might pile up into 2025 if Canada Post was unable to bring back customers like Wingfield.

"Was the uncertainty so long that people said "I can't trust it?" Keep in mind, now we've got [a potential] second strike six months later," he said.

A recent report by a commission charged with examining the Crown corporation's finances made a number of recommendations, including that Canada Post end door-to-door mail delivery to homes. The commission also said the corporation should allow part-time workers to deliver on weekends in order to compete with other companies.

Ryder said making those changes might be vital to Canada Post's survival.

"There's no guarantee the Canada Post would return to profitability," he said. "[But] a clock is ticking and you got to make significant changes within 12 months or this company could be in very deep financial circumstances."