Allegiant pilots ratify contract with 40% wage increase

August 3, 2026 7:09 AM EDT

Investing.com -- Nearly 1,300 pilots at Allegiant Travel ratified a new two-year collective agreement on Monday, the Teamsters Union said. The contract provides higher hourly wages, improved retirement benefits and changes to work rules.

The agreement ends years of difficult negotiations between the union and the low-cost carrier. Allegiant pilots held pickets at 22 U.S. airports in November 2025 to push for industry-standard pay and better scheduling. The pilots had been working under a contract ratified in 2016 that became amendable in 2021.

The new contract provides an immediate average hourly wage increase of about 40% for Allegiant pilots. The ratification also triggers payment of approximately $300 million in accrued retention bonuses to the pilots.

Ryan Joseph, president of Teamsters Local 2118, said the agreement provides about 54% in wage increases by January 2027, along with gains in retirement benefits, workplace rules and overall quality of life compared with the previous contract.

The agreement was approved by an 80% margin, with 99% of eligible pilots participating in the ratification vote, the union said.

The International Brotherhood of Teamsters represents more than 1.3 million workers across the United States, Canada and Puerto Rico.



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