A 48-hour strike planned by baggage handlers and check-in staff at 18 airports from Friday has been cancelled, says Unite.
Members of Unite employed by Swissport had been due to walk out for the two days before Christmas, one of the busiest times of the year for travellers.
They had voted for industrial action in protest at a 4.65% pay rise over three years but the strikes were called off after Unite general secretary Len McCluskey said a better pay offer had been received.
He said: "I am delighted to report that we have reached an agreement which our shop stewards will recommend to our members."
The airports affected were to include Gatwick, Heathrow, Birmingham, Manchester, Glasgow, Stansted, East Midlands and Belfast.
Aberdeen, Bristol, Bournemouth, Cardiff, Doncaster, Edinburgh, Leeds/Bradford, Luton, Newcastle and Southampton had also expected to be disrupted.
British Airways cabin crew are due to strike on Christmas Day and Boxing Day and talks regarding their dispute - also over pay - are continuing.
Mr McCluskey described progress in those talks as "painfully slow".
The airline has said it still expects to run a full service, however.
Meanwhile, thousands of rail and postal workers continued with industrial action on Tuesday and the discontent could soon spread.
Strikes could spread to London Underground in the New Year, with the Rail, Maritime and Transport Union considering action to protest savings that it says have led to 800 job losses.
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