While delays were anticipated, contingencies largely minimised disruptions, with only minor delays reported at Sydney Airport's international terminal.
"We are deeply disappointed that the Transport Workers' Union has chosen to withdraw from the in-principle agreement we reached in December and issued a new notice for industrial action," a spokesperson for dnata, a global provider of airport services, said.
Dnata said the December agreement, negotiated with the Union's National Secretary Michael Kaine and senior officials, included an 11 per cent pay rise over two years, with most employees receiving an immediate 8.5 per cent increase, alongside improved conditions.
The union has since revised its demands, seeking an 11 per cent immediate increase and a further six per cent within six months.
TWU National Secretary Michael Kaine said the strike aimed to restore standards in the industry. (Dan Himbrechts/AAP PHOTOS)
Dnata described the revised demands as "entirely out of step with our financial outlook and the economic realities we face" and warned they could jeopardise 5000 jobs.
The strike involved more than 1000 dnata ground workers handling baggage, cargo and ramp services at Sydney, Melbourne, Adelaide and Brisbane airports.
These workers service airlines including Emirates, American Airlines, Delta Airlines and China Eastern Airlines.
The industrial action follows nearly a year of stalled negotiations, with workers calling for better pay, overtime and shift penalties, increased job security, and higher guaranteed hours.
"These jobs used to be full-time, permanent positions directly employed by airlines," Mr Kaine said.
"Alan Joyce changed all of that - outsourcing the work, splitting it among multiple companies, and driving terms and conditions to rock bottom.
"Workers are now guaranteed only 24 hours a week, making it nearly impossible to secure loans for homes or personal needs."
Mr Kaine said the strike was "brave action" to restore standards in the aviation industry.
"This is not just a couple of union officials at the bargaining table, nearly the entire workforce has taken the really difficult decision to exercise their industrial right to stop work, that's a strong signal."
Dnata maintains that its offer provides "the highest average earnings in the Australian ground handling industry" and has urged the union to return to the bargaining table.
"We remain committed to achieving a fair outcome that supports our employees, but we will not jeopardise the stability of our business and operations," the spokesperson said.