Canada Post has reported a loss of over $300 million over the second quarter of 2020.
The Crown Corporation revealed on Friday that it had lost $378 million before taxes, despite a dramatic increase in parcel volume.
“This increased loss was largely due to the significant impact COVID-19 had on revenue and costs,” says Canada Post in a statement. “Combined with the added costs stemming from the June 2020 arbitrator’s ruling.”
The ruling, according to the company, resulted in new agreements with the Canadian Union of Postal Workers (CUPW).
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Canada Post says that when the country responded to coronavirus, they saw a “dramatic shift” in what they were asked to deliver. The company reported volumes that were as high as during the Christmas season. And although they saw an “unprecedented growth” in parcel volume and revenue, there was a greater decline in transaction mail and direct marketing revenue.
“The estimated total revenue shortfall due to COVID-19 was $46 million,” says the company. “While increased costs related to COVID-19 were an estimated $118 million.”
In total, the negative financial impact due to the pandemic is an estimated $164 million.