Canada Post Faces $748 Million Loss, Implements Stamp Price Increase

Canada Post has announced a third increase in stamp prices since 2019, citing the necessity to adapt to its sales-based revenue structure. Effective immediately, postage rates will rise by seven cents per stamp, reaching 99 cents for booklets, coils, and panes, while individual domestic stamps will cost $1.15, up from $1.07.

The Crown corporation, facing financial challenges exacerbated by increased parcel competition and declining transaction mail, reported a pre-tax loss of $748 million in 2023.

This change will also affect prices for U.S., international, and domestic registered mail services. The decision, initially revealed in February and recently approved under the federal Canada Post Corporation Act, follows previous increases of five cents in 2019 and two cents in 2020.

The Crown corporation, facing financial challenges exacerbated by increased parcel competition and declining transaction mail, reported a pre-tax loss of $748 million in 2023. Since the pandemic’s onset, Canada Post’s parcel market share has dwindled from 62% to 29%, while average household mail receipt dropped from six letters per week to two. Consequently, without service adjustments, the corporation anticipates more significant and unsustainable losses in the future.

Acknowledging the need for change, Canada Post CEO Doug Ettinger emphasized the continued importance of the national postal service to Canadians. The corporation aims to collaborate with the Government of Canada to ensure long-term financial stability while minimizing the impact of price changes on customers. As Canada Post navigates its financial challenges, stamp price adjustments represent a necessary step towards sustaining essential mail services.