WestJet says it will wind down operations at Swoop as it integrates the budget carrier's operations into its main banner.
The move comes after ratification of a new collective agreement that brings pilots of both carriers onto a level pay scale.
The Air Line Pilots Association says the four-year contract includes industry-leading pay increases, job security protections, and major scheduling and quality of life improvements.
The association says 87 per cent of the pilots who voted backed the agreement.
However, WestJet and Swoop flights had already been grounded in anticipation of the possible work stoppage, which was averted.
The pilots' association had said the contract issues revolved around pay, job security and scheduling, with pilots earning roughly half of what some of their U.S. counterparts make.
The new contract goes into effect July 1, with retroactive pay to Jan. 1. It expires at the end of 2026.
"Having this agreement in place will go a long way to solve many of the airline's labour issues, and bring more stability to our operations," Bernard Lewall, who heads the Air Line Pilots Association's WestJet contingent, said in a news release.