Flight attendants at Allegiant Airlines have reached a new labor agreement that includes immediate wage increases for 1,700 crew members. The average pay rise is 25%, with some employees receiving up to 41.2%. The Transport Workers Union of America (TWU) Local 577 negotiated the deal with the Las Vegas-based low-cost airline over an 18-month period, describing it as a “game-changer” that could set a new standard for flight attendants in the industry.
The five-year agreement makes Allegiant crews some of the best-paid among U.S. ultra low-cost airlines. In addition to the wage increases, the deal also includes “wage enhancements,” such as increased duty rig, which increases pay for time spent on duty. Allegiant President Gregory C. Anderson expressed his satisfaction with the ratification of the contract, noting that it was structured to improve the overall experience of flight attendants and recognize their vital role within the company.
Along with the 25% average wage increase upon ratification, flight attendants will receive a 3% hourly pay rise each year, resulting in a combined 41% average increase over the life of the contract. The agreement was reached through strong collaboration between Allegiant and the TWU, with 90% of votes in favor of ratification. Union members are also set to receive a combined $10 million bonus, with flight attendants receiving a minimum of $1,500 lump sum or approximately $1,013 per year of service.
Allegiant is not the only airline navigating labor negotiations, as flight attendants at American Airlines, Alaska Airlines, and United Airlines are also currently negotiating new deals. There is a potential for strike action at Alaska Airlines if progress is not made in the dispute. The recent protest by United Airlines flight attendants over CEO Scott Kirby’s salary highlighted ongoing issues in the industry, while low-cost carrier Breeze recently filed paperwork to unionize. Southwest flight attendants have reached a tentative agreement, pending union ratification.
The airline sector stock index performance for the year-to-date shows the financial performance of airline sector stocks within the ST200 index, which includes globally traded companies in the travel industry. The Skift Travel 200 index combines the financial performance of nearly 200 travel companies worth over a trillion dollars into a single number, providing insights into the overall health of the travel sector. More information on airlines sector financial performance and the methodology behind the Skift Travel 200 index is available for further analysis and understanding.
