Canada Post management report tabled in Parliament said the post office was structurally unsound and predicts ongoing losses of more than $1 billion a year — even with new federal loans. “We have reached a critical point,” said the Summary of the 2025 to 2029 Corporate Plan, per Blacklock's Reporter. “As the landscape has shifted from mail to parcels, cracks are rapidly appearing in the foundation of the postal system. It is clear that significant change is necessary to modernize and preserve our national postal service.”The post office last year reported a pre-tax loss of $841 million even as cabinet approved two separate rate hikes worth $102.2 million a year that raised stamp prices from 92¢ to $1.24 for a domestic letter.“Government cash injections will be necessary to ensure Canada Post can cover operational expenses and maintain adequate cash levels,” said the report.“Excluding any government cash injections, losses are forecasted to exceed $900 million in 2025. Government cash injections will be necessary to ensure Canada Post can cover operational expenses and maintain adequate cash levels.”.Pre-tax losses after federal loans were forecast at $962 million in 2026 followed by $1.1 billion in 2027, rising to $1.2 billion in 2028 and $1.3 billion in 2029. The Corporate Plan did not account for currently unresolved contract disputes with the Canadian Union of Postal Workers, it said.“Cost-cutting actions will not be sufficient to address the deficits outlined in this Plan,” said the report.“We believe Canadians understand our business model must evolve and will support these changes. They can see it in their mailbox and have read about it in the news.”.The public version of the Corporate Plan did not outline any new service cuts. Canada Post CEO Doug Ettinger on May 29 said the post office was “on the brink.”“Major changes are urgently needed,” Ettinger wrote in Canada Post’s latest Annual Report.It required “a bold new approach to make the postal system financially sustainable,” he said. Ettinger did not elaborate.The Annual Report said a 32-day strike by postal workers prior to Christmas accounted for a quarter of last year’s loss, about $208 million. Annual revenues fell 12% overall with a 20% drop in parcel income, 5.3% decline in transaction mail revenue and 3% drop in revenue from flyers or “direct marketing.”“While we have taken significant action to address our financial crisis there is only so much we can do on our own,” said the Annual Report.“Canada Post needs urgent changes.”
