Qantas has broken a deadlock on marathon wage negotiations with its domestic pilots, clearing the way for negotiators to hammer out a deal with international pilots which is holding up its ultra-long haul "Project Sunrise" ambitions.

The airline is confident its largest pilot group will back the new pay deal reached on Friday after more than a year-and-a-half of negotiations.

Qantas has been locked in negotiations with short-haul pilots for more than a year-and-a-half. Credit:Brendon Thorne

The circuit-breaker comes as disputes with pilots and ground crew in its Jetstar business boil over into industrial action which has caused hundreds of flight cancellations.

Market watchers have raised concerns that demands from Qantas' workforce for a bigger share of its improved profitability could put upward pressure on its cost base.