Allegiant Air and its pilots, represented by the Airline Professionals Association, Teamsters Local 2118, have reached a tentative agreement on a new contract, marking a major milestone as the carrier works through its integration with Sun Country Airlines.
According to a summary released by the union, the economic package is substantial. Upon ratification, eligible pilots will receive accrued retention bonus payments valued at approximately $300 million, on or before October 1, 2026. New pay tables take effect retroactively to July 1, 2026, with additional scheduled increases in January 2027 and January 2028. A 12-year captain's rate rises from $232 per hour under the current contract to $355 by 2028, while a first-year first officer sees an increase of more than 100 percent.
Retirement improvements include a 15 percent direct company-funded 401(k) contribution beginning January 1, 2027, replacing the current matching structure with no employee contribution required. Quality-of-life gains include three weeks of paid parental leave, expanded leave protections, and a minimum of 12 days off per bid period upon implementation of the NavBlue preferential bidding system.
Notably for the merger, the TA includes a “Me-Too” letter of agreement protecting Allegiant pilots in the event Sun Country pilots secure a higher hourly rate or 401(k) bridge agreement with Allegiant prior to a joint collective bargaining agreement, along with furlough and displacement protections.
The agreement now heads to Allegiant's roughly 1,400 pilots for a ratification vote. Aero Crew News will update this story as more details become available.
Read the full tentative agreement summary from APA Teamsters Local 2118 here.
