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GlobalX Airlines ends brokerage deal and drops Ascent Logistics lawsuit
The air cargo operator also reported cargo revenue fell about 50% year over year in the second quarter ended June 30.
Global Crossing Airlines, known as GlobalX, has dismissed a breach of contract lawsuit against Ascent Global Logistics, its former largest shareholder, and ended their exclusive brokerage agreement. Yahoo Finance reports the move closes out a dispute that had contributed to the carrier's difficulty generating steady business for its cargo fleet.
GlobalX filed the lawsuit on June 4 seeking $30 million in damages, alleging Ascent failed to honor an agreement intended to steer air cargo work to GlobalX and instead assigned charter activity to USA Jet Airlines, an expedited on-demand freighter subsidiary of Ascent. The companies later reached terms to end the 2023 exclusive brokerage arrangement, with the settlement and lawsuit dismissal finalized last week.
As part of the resolution, GlobalX agreed to payment terms for amounts owed to Ascent, though the companies did not disclose the terms. Publicly known context includes Ascent's demand for the remaining $1.94 million balance of a $2.5 million prepayment tied to providing cargo flights to customers, and GlobalX's claim that Ascent referred only a small number of flights over roughly three years.
GlobalX said its cargo operations have faced challenges, including that it controls four Airbus A321 converted freighters that have not consistently delivered cargo demand. Yahoo Finance adds that in the second quarter ended June 30, cargo revenue dropped $2.9 million, or about 50%, year over year, as the freight market had not materially improved relative to passenger flying.