Allegiant Air Pilots Ratify Landmark Contract — 40% Pay Raise and 00 Million in Retention Bonuses for 1,300 Pilots

Nearly 1,300 pilots at Las Vegas-based Allegiant Air have ratified a landmark labor contract delivering a 40% hourly pay increase and unlocking $300 million in accrued retention bonuses. It’s one of the most significant pilot labor victories at a U.S. ultra-low-cost carrier in recent memory.

The Allegiant Pilots Association, Teamsters Local 2118, announced yesterday that pilots voted 79.51% in favor of the tentative agreement (TA26) on July 31, 2026. Of 1,233 eligible members, 1,220 cast ballots—a 98.95% turnout. The vote was decisive: 970 yes, 250 no. An independent election administrator certified the results, which Allegiant filed with the SEC on August 3, 2026.

Pay Restructuring Addresses Years of Industry Lag

The new two-year contract fundamentally restructures Allegiant’s pay tables. Increases are retroactive to July 1, 2026, with scheduled bumps on January 1, 2027 and January 1, 2028. Entry-level First Officers see the most dramatic gains—hourly rates climb from $57.67 to $107.28 immediately, then to $118.54 by January 2028. That’s a gain exceeding 100% by the contract’s final year.

Captain compensation rises substantially as well. A 12-year captain’s rate jumps from $232 per hour under the previous agreement to $355 per hour by 2028. The deal amounts to roughly 54% cumulative wage growth by January 2027—directly addressing the recruiting liability that has long plagued Allegiant’s junior pilot pipeline.

“This agreement represents a major leap forward for our pilots,” said Ryan Joseph, President of Teamsters Local 2118. “It delivers approximately 54 percent in wage increases by January 2027 and meaningful improvements to retirement, benefits, work rules, and quality of life over our previous contract.”

The retention bonuses—valued at approximately $300 million and representing previously accrued compensation—become payable on or before October 1, 2026. They provide immediate relief to pilots who have endured years of below-market compensation since the prior contract was ratified in 2016 and became amendable in 2021.

Scheduling and Retirement Overhaul

Beyond wages, the agreement substantially upgrades quality-of-life provisions. Allegiant will transition to a commercial preferential bidding system using NavBlue, guaranteeing a minimum of 12 days off per bid period for both line holders and reserves. The deal also establishes a five-hour minimum pay credit for each flight duty period and expanded premium pay for open time and junior assignments.

Retirement benefits receive a major boost. Beginning January 1, 2027, Allegiant will contribute 15% to pilots’ 401(k) accounts without requiring employee contributions—replacing the current matching structure. The carrier also now provides company-paid long-term disability through age 65.

Context — Strategic Timing Amid Sun Country Integration

The ratification arrives during Allegiant’s integration with Sun Country Airlines, a subsidiary acquired for $1.5 billion and closed in May 2026. Sun Country pilots belong to ALPA, while Allegiant’s belong to the Teamsters—creating a complex seniority integration process ahead. Union officials signaled the new contract positions Allegiant pilots favorably for joint collective bargaining: “This agreement gives Allegiant pilots the leverage and momentum they need to protect their careers, seniority, and future,” said Dave Saucedo, Director of the Teamsters Airline Division.

Allegiant operates approximately 200 aircraft across both carriers, primarily Airbus A319 and A320 narrowbodies. The combined pilot workforce—comprising roughly 1,400 Allegiant pilots and nearly 700 Sun Country pilots—will approach 2,100 members once integration concludes.

The deal also reflects industrywide pilot compensation pressure. Legacy carriers American, Delta, and United all negotiated record-breaking contracts between 2023 and 2025, and even ultra-low-cost carriers can no longer compete on wages alone as the global pilot shortage deepens.

The Sun Country/Allegiant seniority integration process and the development of a joint collective bargaining agreement are expected to unfold over multiple years, requiring careful navigation of federal merger procedures and testing the ability of the combined operation to retain talent across both bases.

Sources

• News 3 LV — Airline Pilot Union: Two-Year Contract Allegiant Air Las Vegas Ratification Labor Travel
• Allegiant Travel Company SEC Form 8-K Filing (August 3, 2026)
• International Brotherhood of Teamsters — Local 2118 Ratification Announcement
• Allegiant Pilots Association Official Statements
• AeroCrewNews
• AirlineGeeks