Air Canada and its flight attendants have reached a tentative agreement to end their contract dispute.
Both Air Canada and the Canadian Union of Public Employees (CUPE) announced early this morning.
The deal came after nine hours of talks with help from a federal mediator.
CUPE represents more than 10,000 Air Canada flight attendants who walked off the job early Saturday.
The union said the agreement addresses a key issue that sparked the strike.
"Unpaid work is over," CUPE stated, referring to pay for work done while planes sit on the ground.
The union told members to "fully co-operate with resumption of operations."
Air Canada confirmed the tentative deal and said flights would gradually return beginning this evening.
However, the airline warned customers that full service "may require a week or more."
"The suspension of our service is extremely difficult for our customers. We deeply regret and apologize for the impact on them of this labour disruption," said Michael Rousseau, Air Canada's President and Chief Executive Officer.
The strike disrupted hundreds of thousands of travellers.
Air Canada operates around 700 flights daily and estimated 500,000 customers would be affected by cancellations.
Aviation firm Cirium reported the airline cancelled at least 1,219 domestic flights and 1,339 international flights since August 14.
During the transition back to normal operations, some flights will still be cancelled.
Rousseau said the airline would offer affected customers full refunds, travel credits or rebooking on other airlines when space allows.
The federal government had ordered binding arbitration through the Canada Industrial Relations Board just hours after the strike began on August 16.
CUPE rejected binding arbitration and accused Air Canada of not bargaining in good faith.
This was the first strike by Air Canada flight attendants since the 1980s.
The union gave 72 hour notice on August 13 after negotiations for a new collective agreement failed.
The previous contract expired on March 31.
