Allegiant's first quarter earnings soar, pilots getting pay raise

April 22, 2015 at 7:56p.m.

VIENNA

Allegiant Air, the only commercial airline at the Youngstown-Warren Regional Airport, said Wednesday it would give its pilots a pay increase as a result of the company’s success.

The Las Vegas-based company had halted a strike by the pilots at the beginning of this month, obtaining a court-ordered temporary restraining order.

The pilots, represented by the International Brotherhood of Teamsters Local 1224, have issues with the reduction in benefits for pilots even though the company has seen growth in its profits, and deterioration of a scheduling system.

On Wednesday the airline reported operating income of $108.1 million in the first quarter of 2015 compared with $57.3 million in the first quarter of 2014 — an 88.7 percent increase. Net income was $64.9 million for the first quarter of this year compared with $34.2 million in the first quarter 2014 — an 89.8 percent increase.

Earnings per share were $3.74 this quarter compared with $1.86 in the same quarter 2014.

“I’m also pleased to announce our pilots will be receiving a pay increase as a result of our continued success,” said Maurice J. Gallagher Jr., chairman and CEO of Allegiant. “Excluding a $43.3 million non-cash impairment change in the fourth quarter of 2014, our trailing 12-month operating margin was 21.8 percent as of March 31. As part of our pilots’ variable pay band structure, pilot pay scales will increase between 5 and 7 percent per hour effective May 1.”

Cameron Graff, first officer at Allegiant Air and the union's executive council chairman, said the pay raise announced for May 1 is a part of Allegiant’s existing agreement with the pilots.