Allegiant gives employees bonus after recording big profits

By William R. Levesque, Tampa Bay Times

Wednesday, Nov. 18, 2015 | 6:15 p.m.

Allegiant Air leaders told the budget airline's 3,000 employees Tuesday that they would receive a year-end bonus equal to about 5 percent of their 2015 earnings through the end of September.

The Las Vegas-based airline also told workers that the company expects to end scheduled service between Las Vegas and Honolulu by Labor Day 2016. The airline said the route, while profitable, isn't cost-effective.

Allegiant's net profit rose 213 percent in the third quarter, which ended Sept. 30, to $44.5 million. The airline is responsible for record passenger traffic at St. Pete-Clearwater, with more than 1.6 million people expected to use the airport by the close of the year.

Brian Davis, Allegiant's vice president of marketing, said in an interview that the one-time bonus would be paid to all employees except for senior leaders — vice presidents and above.

"Allegiant's had an incredibly profitable year," Davis said. "It's a way to acknowledge employees' hard work."

The bonus comes amid tense labor negotiations between Allegiant and its pilots' union. The pilots have accused the airline of fattening profits by skimping on maintenance. Allegiant officials said the airline is one of the nation's safest.