Air New Zealand's new pay deal with flight attendants could put the squeeze on the company's finances.

The airline has reached a deal with the flight attendant's union after several days of talks, and strikes which disrupted a number of flights.

Goldman Sachs JB Were aviation analyst Peter Sigley say this sort of thing is part and parcel of business operations.

But he says Air New Zealand will still feel the pinch.

He says any increase in costs in the airline industry puts pressure on margins.

He says the competition makes it difficult to pass those costs on in the form of fare increases.

Details of the agreement will not be released until after it is ratified by union members and that is not likely to happen before Monday.