Cabin crew at Thomas Cook Airlines have voted to accept a two-year pay deal said to be worth about £500 a year each.
The Unite union said the inflation-linked agreement would give annual increases of 3.2% to more than 2,000 of its members.
The £500 a year extra in basic pay for a typical cabin crew member earning £16,107 is being back dated to April 2017.
The company intends to make the payments into December pay packets in time for the festive period.
Staff will then get another pay increase in April in line with the February 2018 retail price index, according to Unite.
Cabin crew voted overwhelmingly to accept the two-year pay deal following months of “constructive negotiations” between Unite and the airline.
They work on flights to major holiday destinations from ten UK airports with the airline’s main hub based at Manchester airport.
Unite regional officer, Mike Gaskell said: “This pay deal is a ‘winter warmer’ which keeps up with inflation and recognises the hard work cabin crew do, day in, day out.
“It’s also good news that workers will receive hundreds of pounds in back pay in time for the festive season. At a time when inflation is on the rise and the economy is challenging, it pays to have a union negotiating pay.”
The retail price index is regarded as a more realistic measure of inflation as it includes changes in housing costs such as council tax, mortgage payments and rent, as well as every day goods and services.