Canada Post is bracing for inevitable stamp price increases following another substantial operating loss, as outlined in its latest annual report. Blacklock's Reporter said stamp rates have surged by 8% starting Monday, with domestic letter prices rising to 99¢, $1.40 for U.S. mail, and $2.92 for overseas deliveries.Despite the stamp price hike generating $23.8 million in revenue, the annual report emphasized that it falls short of covering the cost of delivery. "The exclusive privilege to deliver letters does not generate enough revenue to cover the increasing cost of providing the service," stated the report.The regulatory constraints on stamp pricing were highlighted as a significant challenge. According to the report, the current regulatory approach lacks the flexibility required to adjust stamp prices in line with the Consumer Price Index and the rising costs of mail delivery. All stamp price adjustments must receive approval from the cabinet under an Act of Parliament.Canada Post reported a pre-tax loss of $748 million last year, marking its most significant loss since the onset of the pandemic in 2020. Management attributed this substantial loss to the sustained decline in letter volumes over 17 years and the unexpected loss of market share in parcel deliveries to non-union competitors such as Amazon.The report underscored the swift erosion of Canada Post's market share in parcel delivery, which plummeted from 62 to 29% since 2019, despite parcel volume growth. Management noted that competition in the post-pandemic delivery landscape has intensified at an unprecedented rate.Acknowledging the need to adapt to evolving societal and economic changes, the report emphasized the importance of aligning Canada Post's services with the needs of Canadians to ensure its relevance and viability. It highlighted a significant decline in mail volumes over the past two decades, coupled with a substantial increase in the number of addresses.With Canada Post projecting unsustainable losses in the coming years without significant changes, the report painted a grim financial outlook. The post office's last profitable year was in 2017, with combined losses totaling $2.99 billion since then.An earlier Access To Information memo, dated 2017, predicted escalating losses for Canada Post through 2026, with estimated annual losses potentially reaching $700 million. Deputy ministers cautioned that these estimates might be conservative, with the corporation facing the risk of even greater losses in the future.
