Allegiant pilots prepare no confidence vote against management

Published 14/08/2025, 22:38
Allegiant pilots prepare no confidence vote against management

LAS VEGAS - Allegiant Air (NASDAQ:ALGT) pilots, represented by the International Brotherhood of Teamsters Local 2118, announced Thursday they are preparing to hold a formal Vote of No Confidence in the airline’s current management team and Board of Directors. According to InvestingPro data, the airline’s stock has shown significant volatility, with a beta of 1.72, indicating higher market sensitivity than its peers.

The pilots cited concerns about the company’s financial performance and business decisions, including a 50% drop in market value over six months, a $500 million loss on the Sunseeker Resort project, and spending on ventures outside the airline’s core business. Financial metrics from InvestingPro reveal the company’s challenges, with a -$286 million net income and a concerning Altman Z-Score of 1.22, though analysts expect profitability to return this year.

"Contract or not, [Maury] Gallagher and [Greg] Anderson’s management team have proven that they don’t have what it takes to lead an airline," said Captain Kevin Winter, representing Local 2118, according to the press release.

Teamsters General President Sean O’Brien characterized Allegiant’s leadership culture as "toxic" and "fueled by arrogance."

The pilots’ representatives indicated the vote extends beyond ongoing contract negotiations, focusing on broader leadership concerns they believe affect the airline’s stability.

"We are doing this to protect the airline and the Allegiant brand that we built," said Captain Tyler Heavey in the statement.

Greg Unterseher, Trustee of Local 2118, added that "a no confidence vote is not something any Union takes lightly," stating pilots believe leadership change is necessary for the interests of the airline, employees, customers, and shareholders.

The International Brotherhood of Teamsters represents over 1.3 million workers across the United States, Canada, and Puerto Rico, according to information provided in the press release statement.

In other recent news, Allegiant Travel Company reported strong earnings for the second quarter of 2025, significantly surpassing analysts’ expectations. The company achieved earnings per share of $1.23, compared to the forecasted $0.77, marking a surprise increase of 59.74%. Additionally, Allegiant experienced a slight revenue beat, further highlighting its financial performance. In another development, Raymond James raised its price target for Allegiant to $8.50 from $7.00, citing early signs of market stabilization, including factors like interest rates and trade policy. The firm maintained its Market Perform rating for the company. Furthermore, Allegiant announced the addition of Atlantic City, New Jersey, to its network with four new nonstop routes to Florida destinations. These routes will connect Atlantic City International Airport with Fort Lauderdale-Hollywood International Airport, St. Pete-Clearwater International Airport, Orlando Sanford International Airport, and Punta Gorda Airport, with service commencing in late 2025. These developments highlight Allegiant’s ongoing expansion and financial achievements.

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