Icelandair Group has reached an interim agreement with pilot union FIA intended to settle a dispute which has led to industrial action.
The wage agreement is valid until the end of September, says the company. But it will work with the cockpit union to finalise a long-term deal.
Icelandair Group says: "The agreement is, in broad terms, in line with agreements already signed on the Icelandic labour market this year."
FIA will vote on the deal over the next seven days.