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Commercial flights between the US and Cuba are set to be restored which could see thousands of tourists visit the island on a daily basis.
The pact, which was announced on Thursday, will allow US airlines to discuss flight routes and schedules with the Cuban government.
It could mean more than a dozen flights arriving into Cuba from the US every day, according to officials quoted by the BBC.
Dates for the first flights are not yet known.
Tourist travel to Cuba is prohibited under US law for US citizens. Those travelling have to book charter flights or via third countries and are also forced to use various legal loopholes for their travel to be legal.
The move is seen as a key development in the thawing of Cuban-US relations with both countries continuing to negotiate over a number of issues which could ultimately see the US trade embargo lifted.
Messrs Castro and US President Barack Obama announced the normalisation of relations in December 2014, after more than 50 years of hostility since the Cold War.
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