Canada Post lost $407M in 2nd quarter, says customers seeking out other parcel carriers

Canada Post continues to hemorrhage money, losing $407 million in the second quarter of 2025, the beleaguered Crown corporation announced Tuesday.

It's the largest quarterly loss as parcel revenue plummets, the postal service said.

Canada Post attributed the before-tax loss to uncertainty stemming from lengthy contract negotiations between it and its union.

According to the latest figures from the corporation, parcel revenue is down by $288 million as Canada Post delivered 25 million fewer packages in the second quarter than it did a year earlier.

Since the start of 2025, parcel revenue is down nearly half a billion dollars.

"Parcels results declined sharply as the strike activity and labour uncertainty drove customers to other carriers for their deliveries," said a statement from the Crown corporation.

Canada Post and the Canadian Union of Postal Workers have been deadlocked in contract negotiations for more than 18 months, resulting in a month-long strike late last year in the lead-up to the busy holiday delivery season.

Negotiations were further delayed this week. On Monday, the union said Canada Post cancelled the meeting because it needed more time to review the union's latest offer, which seeks higher wages while allowing for the addition of weekend delivery and part-time workers to the postal service.

Workers rejected Canada Post's latest offer in a majority vote earlier this summer. The union said it did not meet its members' needs and said it will continue to maintain its national ban on overtime

The Crown corporation's financial troubles have become a focal point as the talks drag on.

An Industrial Inquiry Commission report from Commissioner William Kaplan earlier this year found the postal service was "effectively insolvent" and needed substantial reforms to remain afloat, including phasing out door-to-door letter delivery for individual addresses and replacing it with community mailboxes.

Daily delivery to businesses should be maintained, the report recommends.

"Canada Post is facing an existential crisis," Kaplan wrote in his May report. "Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate."