Canada Post posted a staggering $841-million loss before tax in 2024, its seventh consecutive year in the red, as the national postal service struggles under outdated systems, mounting competition, and the fallout from a major labour disruption.The Crown corporation cited a 32-day strike by the Canadian Union of Postal Workers (CUPW) during the peak holiday season as a major blow to its bottom line, accounting for an estimated $208-million hit. Overall, revenue dropped by $800 million, or 12.2%, compared to 2023, with steep declines across Parcels, Transaction Mail and Direct Marketing.The company’s operating loss for the year reached nearly $1.3 billion. Without the benefit of non-recurring gains and dividend income from the sale of SCI Group Inc. and Innovapost Inc. earlier in the year, the loss before tax would have been even larger.“Canada Post is Canada’s delivery infrastructure,” said President and CEO Doug Ettinger. “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.”Since 2018, Canada Post has accumulated more than $3.8 billion in pre-tax losses. The corporation continues to face challenges from declining letter mail, shrinking parcel volumes, and growing competition from low-cost delivery alternatives. Labour and benefits made up 65% of total operating costs in 2024. The postal workers are again threatening to go on strike.To keep the postal service solvent, the federal government announced up to $1.034 billion in repayable funding for Canada Post during its 2025-2026 fiscal year. While this will ensure short-term operational stability, the company emphasized that structural reforms are urgently needed.The corporation warned that its long-standing mandate to deliver across the country without taxpayer support is under serious threat unless it gains greater flexibility to modernize its delivery model, collective agreements, and regulatory framework.Among the most significant operational setbacks was in the Parcels division, where revenue plunged by $683 million, or 20.3%, and volume dropped by nearly 20%, partly due to customers switching to other carriers during the strike. Transaction Mail volumes fell by 187 million pieces, or 9.3%, while revenue decreased by $105 million, or 5.3%. Direct Marketing fared slightly better, with a smaller revenue dip of $21 million, or 3%, even as volume rose modestly.Canada Post’s Group of Companies — which includes Purolator Holdings Ltd. — recorded a $665-million loss before tax in 2024, up from $529 million the previous year. Purolator itself remained profitable, reporting a $294-million profit before tax.Canada Post is now pressing the federal government for deeper reforms, warning that without urgent action, even larger and unsustainable losses loom on the horizon.Franco Terrazzano, federal director of the Canadian Taxpayer's Federation, said the post office should stamp itself out of business."With Canada Post bleeding money like crazy, taxpayers have every reason to worry it won't repay the $1-billion loan the government just gave it," he said."Who is going to get fired if the money doesn't get repaid in full? Taxpayers shouldn't be on the hook for a $1-billion bail out to Canada Post and we need assurances that Canada Post will pay back every dime.""The government shouldn't be in the mail business and it should sell off Canada Post."
