Air Canada and the union resumed talks on Monday night, for the first time since the weekend strike began.
Unemployment is affecting about 130,000 travellers per day at the peak of the summer travel season.
The union noted that the agreement will guarantee its members payment for work done while the aircraft are on the ground, thus solving one of the main problems that drove unemployment.
The Industrial Relations Board of Canada had called a strike on Monday and ordered flight attendants to return to work.
But the union said it would defy the board. Union leaders also ignored a weekend order to submit to binding arbitration and end the strike by Sunday afternoon.
Air Canada operates about 700 flights a day. The airline estimated on Monday that 500,000 customers would be affected by the cancellations.
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