Aug 3 (Reuters) - The Teamsters Union said on Monday that nearly 1,300 pilots at Allegiant Travel have ratified a new two-year collective agreement, securing higher hourly wages as well as improvements to retirement benefits and work rules.
The agreement follows years of contentious negotiations, with Allegiant pilots staging pickets at 22 U.S. airports in November 2025 to demand industry-standard pay and improved scheduling.
At the time, the U.S. low-cost carrier's pilots were working under a contract that was ratified in 2016 and became amendable in 2021.
Here are some details:
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Under the agreement, the U.S. low-cost carrier's pilots will receive an immediate average hourly wage increase of about 40%.
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The union added that its ratification triggers the payment of about $300 million in accrued retention bonuses to Allegiant pilots.
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Ryan Joseph, president of Teamsters Local 2118, said 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.
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The agreement was approved by an 80% margin, with 99% of eligible pilots participating in the ratification vote, the union said.
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The International Brotherhood of Teamsters, founded in 1903, represents more than 1.3 million workers across the United States, Canada and Puerto Rico.
Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Vijay Kishore
Source: Reuters