Canada Post posts $841-million pre-tax loss in 2024

Canada Post recorded a pre-tax loss of $841 million in 2024, marking its seventh consecutive annual deficit as the Crown corporation grapples with shrinking mail volumes, mounting competition in parcel delivery and what it calls outdated operating constraints.

The company’s operating loss for the year reached nearly $1.3 billion, excluding one-time gains and dividend income from the sale of its subsidiaries SCI Group Inc. and Innovapost Inc. Without those divestitures, the financial picture would have been significantly worse, Canada Post said.

Since 2018, the organization has accumulated more than $3.8 billion in pre-tax losses.

“The status quo has led us to the verge of financial insolvency and is not an option,” said Doug Ettinger, president and CEO of Canada Post. “The need to change, respond to our challenges and secure this important infrastructure for the future is more urgent than ever before.”

Revenue in 2024 fell by $800 million — or 12.2 per cent — compared with the previous year, with declines across all major business lines, including parcels, transaction mail and direct marketing. The company’s pre-tax loss widened by $93 million compared to 2023.

A 32-day national strike by the Canadian Union of Postal Workers (CUPW) in the fourth quarter added pressure, according to Canada Post. The walkout, which began Nov. 15 during the peak holiday season, contributed an estimated $208-million net negative impact to the corporation’s financial results, with the largest blow dealt to its parcels business.

“Many customers who turned to other carriers for their shipments have not yet returned to Canada Post — and that’s expected to have a financial impact well into 2025 and beyond,” the company said in a statement.

Labour and benefits represented approximately 65 per cent of Canada Post’s total operating costs in 2024.

The federal government announced in early 2025 that it would make up to $1.034 billion in repayable funding available to Canada Post by March 2026 to help keep the service solvent. While the funding provides a short-term bridge, the corporation says deeper structural reform is essential.

“Canada Post must be able to change as the needs of the country change. However, the corporation is rapidly falling behind,” the statement said. “Without significant changes… Canada Post projects larger, unsustainable losses in future years.”

Parcel revenue declined by $683 million — or 20.3 per cent — as volumes dropped by nearly 56 million pieces. The fall was attributed to the strike, increased competition from low-cost delivery providers and lower fuel surcharges.

Transaction mail revenue dropped $105 million, or 5.3 per cent, as Canadians and businesses continued shifting to digital communication. Volumes fell by 9.3 per cent.

Direct marketing was the least affected, with revenue dipping $21 million, or three per cent. While volumes increased by 102 million pieces, the gains were offset by holiday campaign cancellations due to the strike.

Canada Post’s Group of Companies — which includes Purolator Holdings Ltd. — reported a combined loss before tax of $665 million in 2024. Purolator itself posted a $294-million profit, up slightly from 2023.

Canada Post emphasized that it operates under a user-pay model and does not receive taxpayer funding for operations. However, it said that without changes to its delivery model, regulatory framework and labour agreements, the future of the national postal system remains in jeopardy.

“Canada Post is Canada’s delivery infrastructure. We have the network, the people and the trusted experience to support all Canadians and Canadian retailers,” said Ettinger. “We must be prepared to do what’s necessary to help deliver for Canada as it navigates a challenging future.”