Allegiant Pilots Ratify Contract, Win Immediate 40% Average Hourly Pay Hike and $300M in Retention Bonuses

Allegiant Air’s pilots have approved a new two-year labor deal that the union says delivers an immediate average 40% increase in hourly pay and unlocks roughly $300 million in accrued retention-bonus payments, ending years of contract talks and clearing the way for the next round of bargaining tied to the carrier’s combination with Sun Country.

Nearly 1,300 pilots represented by the Allegiant Pilots Association, Teamsters Local 2118, ratified the agreement, according to a Teamsters statement dated Wednesday. The union said the deal passed by an 80% margin, with 99% of eligible pilots participating in the vote. In the same statement, Local 2118 President Ryan Joseph said the contract “delivers approximately 54 percent in wage increases by January 2027,” a figure attributed to the union.

The bonus payout tied to ratification had already been flagged in Allegiant Travel Co.’s public filings. The Teamsters said approval of the contract triggers about $300 million in accrued retention bonuses for Allegiant pilots. Allegiant’s Form 10-Q for the quarter ended March 31, 2026, disclosed an “accrued pilot retention bonus” of $256.0 million, including payroll taxes, and said the bonus “will be paid to all pilots remaining employed with us after ratification of a new collective bargaining agreement.” The union’s approximately $300 million figure and Allegiant’s last publicly filed $256.0 million figure as of March 31 leave a numerical gap, though both were presented by their respective sources.

Beyond pay, the union said the agreement includes a company-funded 15% direct 401(k) contribution, company-paid long-term disability coverage through age 65 and a five-hour minimum pay credit for each flight duty period. The contract also includes expanded leave protections, increased premium pay for open time, voluntary flying and junior assignments, along with scheduling-system protections, minimum days-off guarantees, displacement and fleet-transition protections, and furlough protections tied to scheduling efficiencies.

The ratification closes a long-running labor process. Allegiant said in its March 31 10-Q that the pilots’ contract had been amendable since 2021 and that the airline and the Teamsters jointly requested mediation from the National Mediation Board in January 2023. The company also said it began accruing the pilot retention bonus in May 2023, with the union’s agreement, while negotiations continued.

Joseph called the agreement “a major leap forward for our pilots,” saying it brings “meaningful improvements to retirement, benefits, work rules, and quality of life over our previous contract.” Dave Saucedo, director of the Teamsters Airline Division, said, “This is a major win for Allegiant pilots across the country.”

The union said its focus now shifts to joint collective bargaining and seniority list integration, the process of combining pilot rankings after an airline deal. That next step follows Allegiant’s 2026 combination with Sun Country and will shape how the two pilot groups are folded into future contract talks.