Virgin Australia has thwarted strike action before Christmas, winning agreement for a new pay deal in which its cabin crew will pocket up to 18 per cent higher wages, ending six months of negotiations and allowing the airline to restore bookings during the busy summer period.

The Transport Workers’ Union and Flight Attendants’ Association of Australia jointly negotiated the deal, under which cabin crew pay will rise by 14 per cent to 18 per cent over the three-year agreement.