Allegiant Pilots Approve Contract With 40% Hourly Pay Increase

The new agreement also releases $300 million in accrued retention bonuses to the pilots.

An Allegiant Air Airbus aircraft.
An Allegiant A319 in Las Vegas. (Photo: AirlineGeeks | William Derrickson)
Gemini Sparkle

Key Takeaways:

  • Allegiant Air pilots ratified a new two-year labor agreement, securing an immediate average hourly wage increase of approximately 40% and unlocking $300 million in accrued retention bonuses.
  • The deal, approved by an 80% margin, includes a company-funded 15% direct 401(k) contribution, company-paid long-term disability, expanded leave protections, increased premium pay, and various job and furlough protections.
  • Overall, the agreement is projected to deliver approximately 54% in wage increases by January 2027, along with significant improvements to benefits and quality of life.
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Pilots at Allegiant Air voted to ratify a new, two-year labor agreement that will provide an immediate average hourly wage increase of around 40% and unlock approximately $300 million in accrued retention bonuses.

The Allegiant Pilots Association-Teamsters Local 2118 said Monday that the deal passed with an 80% margin, with 99% of all eligible pilots participating in the vote.

Besides the immediate pay increases and bonuses, the agreement also includes a company-funded 15% direct 401(k) contribution; company-paid long-term disability through age 65; a five-hour minimum pay credit for each flight duty period; expanded leave protections; increased premium pay for open time, voluntary flying, and junior assignments; minimum days-off guarantees; displacement and fleet transition protections; and furlough protections connected to scheduling efficiencies.

“This agreement represents a major leap forward for our pilots,” Local 2118 President Ryan Joseph said in a news release. “It delivers approximately 54% in wage increases by January 2027 and meaningful improvements to retirement, benefits, work rules, and quality of life over our previous contract… That’s exactly what this agreement was designed to accomplish.”

Local 2118 said it will now turn its focus to joint collective bargaining and senior list integration as Allegiant absorbs Minnesota-based Sun Country. Allegiant officially completed its acquisition of Sun Country in May.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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