Canada Post reports a pre-tax loss of $748 million for 2023 and warns of worse to come

The Crown Corporation says it is struggling with fierce competition in package delivery services

Canada Post says it lost $748 million before taxes last year, as it warned that larger, unsustainable losses are likely to follow if its business model is not changed.

The Crown Corporation says it is struggling with intense competition in package delivery services, which has caused its market share to decline from 62 percent before the pandemic to 29 percent last year.

According to the report, the increase in package competition stems from the fact that the Postal Service has also seen a decrease in the number of letters, while the number of addresses and delivery costs are increasing.

CEO Doug Ettinger says Canada Post needs to adjust its business model as the postal service has seen a 60 per cent drop in the number of letters delivered since 2006.

Last year’s loss was about 37 percent bigger than the $548 million it lost in 2022, while revenue of $6.9 billion was 3.3 percent lower than a year earlier.

The Canada Post Group of Companies reported a loss of $529 million last year, as the $293 million earned by the Purolator segment somewhat offset losses at Canada Post.

The Canadian Press