Allegiant to increase pilot pay 5-7%
(Reuters) - Allegiant Travel Co said it would raise its pilots' pay by 5-7 percent per hour effective May 1 and that the Federal Aviation Administration (FAA) had stepped up its surveillance of labor disputes at the low-cost airline operator.
Allegiant also said it expects a successful outcome on a preliminary injunction it had filed against a planned strike by its pilots, after two years of talks on contract terms fell through.
On April 1, a U.S. judge issued an order temporarily blocking Allegiant Air pilots from striking, avoiding a strike that could have grounded more than 250 flights throughout the country ahead of a holiday weekend.
The FAA has indicated that it would not process any current or additional requests for work relating to Allegiant's planned growth.
Allegiant said it does not yet expect any immediate effect on its operations.
The company on Wednesday reported a profit of $3.74 per share for the first quarter ended March 31, above analysts' average estimate of $3.53, according to Thomson Reuters I/B/E/S.
Allegiant's shares closed down slightly at $167.85 on Wednesday on the Nasdaq.