First read is on us.

Subscribe today to keep up with the latest travel industry news.

Allegiant Flight Attendants Agree ‘Game-Changer’ Labor Deal, Wages to Rise up to 41.2% 


An Allegiant Air Airbus A320

Skift Take

Union bosses have said the agreement sets a new benchmark for U.S. flight attendants across the industry.

Flight attendants at Allegiant Airlines have agreed to a “game-changer” new labor deal. The breakthrough will see 1,700 crew members receive immediate wage increases. 

The average pay rise is 25%, however the exact amount varies. While the minimum is 20%, Allegiant staff with the longest tenure and who have reached the top pay rate under the current contract will get up to 41.2%.

The new agreement is the result of intensive negotiations that started more than 18 months ago. It represents the Transport Workers Union of America (TWU) Local 577’s second deal with the Las Vegas-based low-cost airline.

Alex Garcia, TWU International Executive Vice President described the new contract as “a game-changer.” He also suggested it could have an impact across the wider sector, arguing that it “sets a new standard for flight attendants at other low-cost carriers like Spirit and Frontier.”

The agreement covers five years and makes Allegiant crews some of the best paid among U.S. ultra low-cost airlines. In addition to the headline pay rises, the deal also includes what the TWU describes as “wage enhancements.” For example, there will be greater ‘duty rig,’ which increases the amount of time flight attendants are paid for being on duty.

Airline ‘Pleased’ With Deal

Allegiant President Gregory C. Anderson said he was “pleased” that the proposals had been ratified. “This contract is structured to meaningfully improve [flight attendants’] experience and better recognize their vital role as part of Team Allegiant,” he added.

Along with the average 25% wage increase upon ratification, other changes are also in the pipeline. All flight attendants will get an hourly pay rise of 3% each year for a combined 41% average increase over the life of the contract.

The company has credited its “strong positive working relationship” with the TWU for helping reach a deal, which was ratified through a conclusive vote. The TWU reported that 90% of votes were in favor with 97% of eligible voters having their say. 

It represented the second phase of the current round of negotiations. An earlier tentative agreement reached in June 2023 was voted down.

Union members are also in line for a combined $10 million bonus. Flight attendants will receive whatever is greater between a minimum $1,500 lump sum or approximately $1,013 per year of service. Full terms of the deal are on the TWU website

Labor Unrest Among U.S. Flight Attendants 

Allegiant management has not been alone in navigating intensive labor talks. Flight attendants at American Airlines and Alaska Airlines are among those currently negotiating new deals. Strike action at Alaska is a possibility if progress is not made in the dispute. 

Just last week, flight attendants at United Airlines picketed the carrier’s major hubs and bases in the U.S. and U.K. The recent disclosure of United CEO Scott Kirby’s pay sparked the protest — he made close to $19 million in 2023. The airline said it was continuing negotiations with the Association of Flight Attendants (AFA) union.

In other developments, flight attendants at low-cost airline Breeze filed the paperwork to unionize with the AFA in January.

Elsewhere, Southwest flight attendants recently reached a tentative agreement with the company, but the union needs to ratify the new contract before it can go into effect.

Airlines Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance

Read the full methodology behind the Skift Travel 200.

Up Next

Online Travel

Building Travel Brand Love through Content and Culture

Aligning with major cultural moments can help brands connect with the right audience at the right time. Live sports, music tours, and shopping events like Prime Day can unlock huge opportunities for travel advertisers to build long-term loyalty and drive bookings.
Sponsored