Stobart Air staff who had originally been put on unpaid leave are to be furloughed instead.
The company provides cabin crew for Aer Lingus’ regional services operating from Southend Airport.
It had initially declined to implement the government’s job retention scheme citing “cashflow issues”.
Union Unite, which represents more than 30 workers affected by the decision, said Stobart Air has now confirmed staff will be furloughed.
The initial furlough payment will be delayed until the company has received funding for the scheme from the government.
Unite regional officer Jo Jaques said: “Our members are hugely relieved that Stobart Air has agreed to do the right thing and is now furloughing its workforce.”