Canada Post posts $1.3B operating loss in 2024, citing declines in letter and parcel revenue and ongoing strike threats amid calls for urgent reform.
Deepening Losses Highlight Urgent Challenges
Canada Post has reported an operating loss of nearly $1.3 billion for 2024, with its annual report revealing steep declines in both letter mail and parcel revenue. The Crown corporation’s losses before tax totaled $841 million after accounting for the sale of certain business ventures, marking its seventh consecutive year in the red and bringing total losses since 2018 to over $3.8 billion.
Declining Revenue and Competitive Pressures
The financial blow was driven by an $800 million, or 12.2%, drop in annual revenue compared to 2023, with both traditional letter mail and parcels hit hard. Parcel delivery revenue alone fell by $683 million, as Canada Post continued to lose ground to private-sector competitors offering more flexible and cost-effective services. The corporation’s CEO, Doug Ettinger, warned that the current business model, built for a “bygone era of letter mail,” is no longer sustainable.
Impact of Labour Disruptions
A 32-day national postal strike late in 2024 further deepened the losses, contributing a net negative impact of $208 million to the year’s results. The strike, which ended only after federal intervention, drove many customers to alternative carriers—many of whom have yet to return. Canada Post continues to face uncertainty as another potential strike looms, with the Canadian Union of Postal Workers (CUPW) recently issuing a new strike notice.
Calls for Reform and Government Response
The federal government has provided up to $1.034 billion in repayable funding to keep Canada Post solvent through March 2026, but officials and outside experts stress that structural reforms are urgently needed. Recommendations from a recent commission include ending door-to-door delivery and allowing part-time weekend workers to better compete with private carriers. Public Works Minister Joël Lightbound has urged both Canada Post and the union to negotiate a solution at the bargaining table, signaling no immediate government intervention.
Erosion of Customer Confidence
Small business owners, such as Victoria-based Scott Wingfield, report shifting away from Canada Post due to reliability concerns during and after the strike. Experts warn that if Canada Post cannot regain lost customers, financial losses may continue to mount into 2025 and beyond.
Outlook
With falling revenues, rising competition, and unresolved labour disputes, Canada Post faces mounting pressure to modernize its operations and secure its future as a vital national service. The corporation’s leadership and stakeholders agree: the status quo is no longer an option.
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