Qantas Airways will pay staff a one-off bonus of A$90 to employees affected by an 18-month wage freeze.
More than 28,000 employees will receive a bonus, including those at low-cost subsidiary Jetstar.
The deal is part of the workers’ collective agreement, Qantas said on Friday.
The news comes as the carrier reports its strongest half year results for four years, ending a string of bad news.
Last year, the airline reported its biggest annual loss to date.
A year earlier, it had announced that it was cutting some 5,000 jobs.
Chief executive Alan Joyce said: “Our ability to make these bonus payments reflects a bright future for the Qantas Group, provided we stay focused on fully delivering the transformation program that has brought us this far.”
The pay-out will be worth about five per cent of employees’ base annual salary and will be made after the group’s full-year earnings results on August 20th.