Canada Post has reported a $748 million loss for 2023 and warned of more red ink ahead as it continues to lose market share in the highly competitive parcel segment.
A Crown corporation that is largely funded through postage, Canada Post says that its share of the parcel delivery market has declined to 29% today from 62% before the Covid-19 pandemic struck in 2020.
Canada Post is also struggling with declining numbers of letters and transaction mail (bills and statements) even as the number of addresses and delivery costs grow throughout the country.
Canada Post says that it has seen a 60% decline in letters delivered since 2006.
The loss in 2023 was 37% larger than the $548 million that Canada Post lost in 2022. Overall revenue at Canada Post fell 3.3% year-over-year in 2023 to $6.9 billion.
As a Crown corporation, Canada Post reports to the Minister of Public Services and returns any profits to the Government of Canada, which is considered its shareholder.
In turn, losses at Canada Post are borne by the taxpayer through the federal government.
