Nearly 1,300 pilots at Allegiant Travel have formally approved a new two-year collective bargaining agreement that delivers significant pay raises and enhancements to retirement and work rules, the Teamsters Union said on Monday.
The union said the ratified contract gives pilots an immediate average hourly wage increase of about 40% and triggers payment of about $300 million in accrued retention bonuses. According to the union, the agreement will yield roughly 54% in wage increases by January 2027 along with "significant gains in retirement benefits, workplace rules and overall quality of life compared with the previous contract."
The vote to accept the deal passed by a wide margin. The union reported that 99% of eligible pilots participated in the ratification vote and that the agreement was approved by an 80% margin.
Context and background
Pilots at the U.S. low-cost carrier had been operating under a contract that was ratified in 2016 and became amendable in 2021. Negotiations over a successor agreement had been contentious for several years, culminating in pilots staging pickets at 22 U.S. airports in November 2025 to press for industry-standard pay and improved scheduling.
Union leadership emphasized the scope of the gains the agreement secures for pilots. Ryan Joseph, president of Teamsters Local 2118, said the deal provides about 54% in wage increases by January 2027, together with meaningful enhancements to retirement benefits, workplace rules and quality of life relative to the previous contract.
"The agreement provides about 54% in wage increases by January 2027, along with significant gains in retirement benefits, workplace rules and overall quality of life compared with the previous contract." - Ryan Joseph, Teamsters Local 2118
Union scope
The International Brotherhood of Teamsters, which represents the pilots under Local 2118, was founded in 1903 and represents more than 1.3 million workers across the United States, Canada and Puerto Rico, the union said.
The agreement marks a resolution to several years of strained bargaining, and it commits Allegiant pilots to a two-year contract that includes both immediate and phased wage gains plus improvements to retirement and workplace terms.
Details provided by the union include:
- Immediate average hourly wage increase of about 40%.
- Payment of about $300 million in accrued retention bonuses tied to ratification.
- An overall wage increase of about 54% by January 2027, along with enhanced retirement benefits and workplace rule changes.
- Approval by an 80% margin with 99% participation in the ratification vote.
The company at the center of the agreement is a U.S. low-cost carrier. The union framed the deal as providing substantial improvements over the contract that had been in place since 2016 and was amendable beginning in 2021.