A threat of strike action by cabin crew at Thomas Cook Airlines over redundancy terms has been lifted.

The Unite union said an “accommodation” had been reached with Thomas Cook to end the prospect of an industrial dispute.

The row centred on terms for 500 jobs which have been put at risk if redundancy as Cook moves to trim the size of its airline fleet as part of cost saving measures.

Redundancy payments will now include a 2.5% pay rise backdated to April. The deal emerged on the eve of Cook announced its financial results tomorrow (Wednesday).