A ruling limiting night flights at Dublin Airport to 35,672 a year amounts to a “second passenger cap” and will squeeze growth at Ireland’s biggest gateway, airlines warned on Thursday.

Planning appeals board An Coimisiún Pleanála earlier on Thursday said it would extend the hours the airport can operate from its new “north” runway to between 6am and midnight. Previously, there had been a ban on landing or taking off from that runway between 11pm and 7am.

The decision means the average number of flights allowed through the airport’s two runways between 11pm and 7am is increased to 98 from 65 a day, subject to an annual limit on night flights of 35,672. The older south runway will remain open through the night, while the north runway will close between midnight and 6am.

Planners also propose that night time noise be managed through a quota system, something sought by airlines and airport operator, DAA.

However, Dublin’s biggest carriers, Aer Lingus and Ryanair, warned that the new limit on night flights would hinder or eliminate growth on European and North American routes.

Ryanair argued that the airport could reach the new limit this year, so the ruling would halt growth between 5am to 7am, key for aircraft taking off for Europe or landing from North America.

The airline predicted the decision would prevent Dublin Airport growing past its current level even though the new north runway could support expansion to 60 million passengers a year, almost twice what it handles now.

Ryanair dubbed the limit a “second cap” on top of the existing 32 million a year limit on passengers at Dublin Airport.

“Dublin Airport – as the big economic gateway to Ireland – is now subject to two Government-imposed traffic caps,” Ryanair declared. It called on Minister for Transport, Darragh O’Brien and the Government to legislate to axe both limits.

Aer Lingus warned that the “unnecessary restriction” would hinder future growth on the North Atlantic and the basing of new short-haul aircraft at Dublin, with negative consequences for jobs.

Kenny Jacobs, DAA chief executive, said the company was “disappointed with the night time movements cap which is on top of a noise quota”, although he stated the commission’s decision was “good overall”.

The DAA said the commission’s ruling ended the situation where Dublin had fewer night flights with two runways than it previously had with just one. Mr Jacobs noted that the airport’s use of a new €320 million runway had been hamstrung up to now.

Quotas rather than aircraft movements are meant to encourage airlines to buy newer, less noisy planes, according to DAA.

Aer Lingus argued that a quota system on its own was all that was required to manage noise at Dublin.

Ryanair said that the new ruling took no account of modern aircraft design. “What’s the point of investing in quieter aircraft if a blunt force cap on movements is imposed?” the carrier asked.

The commission’s ruling argues that the limit on the number of flights at night is needed to ensure that the overall noise environment does not deteriorate with consequences for local residents.

However, Liam O’Gradaigh, spokesman for local group St Margarets the Ward Residents condemned the decision saying it would subject thousands of people living around the airport to unnecessary noise and pollution.

The decision removes a “significant barrier” to the DAA’s separate application for permission to build new infrastructure and lift the passenger cap to 40 million, according to the airport operator.

Fingal County Council, the airport’s planning authority, could not deal with that application without the DAA providing information to the Aircraft Noise Competent Authority, which it could not do before Thursday’s planning decision.

“We welcome the clarity today’s decision brings which removes uncertainty for Dublin Airport and the airlines, as well as having a positive impact on jobs and investment in Ireland,” said Mr Jacobs.

“We also reaffirm our clear commitment to engaging with the local community to mitigate the impact of airport operations and have already begun to implement the noise insulation grant scheme.”

The commission included provision for an insulation scheme for eligible property owners.

Welcoming the ruling, Mr O’Brien predicted that it would allow DAA progress its planning applications and said it should continue to engage with residents.