Nearly 1,300 pilots at Allegiant Travel voted to ratify a new two-year collective bargaining agreement on Monday, the Teamsters Union said. The contract delivers higher hourly pay, bolstered retirement provisions and adjustments to work rules.
The pact ends a prolonged round of difficult bargaining between the union and the low-cost carrier. Pilots staged pickets at 22 U.S. airports in November 2025 as part of efforts to secure industry-standard compensation and improved scheduling. Before this agreement, pilots were operating under a contract ratified in 2016 that became amendable in 2021.
Under the newly approved terms, Allegiant pilots receive an immediate average hourly wage increase of about 40%. The ratification also triggers the disbursement of approximately $300 million in accrued retention bonuses to participating pilots.
Ryan Joseph, president of Teamsters Local 2118, said the agreement will result in roughly 54% in cumulative wage increases by January 2027. Joseph also noted the deal includes gains in retirement benefits, changes to workplace rules and an overall improvement in quality of life compared with the prior contract.
The union reported strong support for the agreement: the measure passed by an 80% margin, with 99% of eligible pilots taking part in the ratification vote.
The pilots are represented by the International Brotherhood of Teamsters, which the union notes represents more than 1.3 million workers across the United States, Canada and Puerto Rico.
Labor relations at the carrier had been a focal point for pilots who cited pay and scheduling as central concerns. The new agreement addresses those issues through both immediate and scheduled wage increases alongside contractual changes intended to affect retirement and work-life arrangements.
From a corporate viewpoint, the deal substitutes the long-standing 2016 contract framework with a new two-year structure that carries material financial implications through higher hourly rates and the payout of previously accrued retention bonuses. The contract terms specify both near-term compensation relief and additional wage gains to be realized by early 2027.
While the ratification concludes the current bargaining cycle between Allegiant and its pilot group, the agreement itself governs pay and rules for the next two years under the terms the union and carrier agreed to.