Ryanair has warned prices of flights could rise at Dublin Airport due to the current cap on passenger numbers.
The carrier says it has been offered one million less seats than required to meet demand this winter.
The company is calling on Transport Minister Eamon Ryan to intervene and "urgently" scrap the 32 million traffic cap.
"The artificial cap at Dublin Airport is resulting in airlines having less capacity vs demand and risks driving up prices of flights to the levels last seen in the 1980s," the airline said in a statement.
"This winter Ryanair sought to grow by +9% and carry 7.5 million passengers to/from Dublin Airport while also launching 15 new routes but due to this artificial traffic cap - a planning condition from 2007, almost 20 years ago - has only been allocated 6.4 million seats."
Dublin Airport cap 'now starting to bite'
Ryanair said it has already "been forced" to switch three aircraft, 16 new routes and over 200 jobs to Italy for the summer "which would have gone to Dublin".
Ryanair CEO Eddie Wilson said customers will likely pay the price.
"This artificial cap is now starting to bite with a ban on additional extra flights that are required to meet customer demand, especially at peak travel periods like mid-term, sporting events and Christmas," he said.
"[This] is going to result in significantly higher airfares as demand will exceed supply.
"Not alone is Ryanair’s $300m investment and new jobs being blocked but this enforced reduction in seats will only lead to consumers having to pay higher air fares and may well result in the return of pricing that was last seen in the 1980s."
Passengers wait to board a 'redeye' early morning flight at Dublin Airport in May 2010. Picture by: Peter Titmuss / Alamy Stock PhotoMr Wilson said inaction on the cap would see jobs and connectivity suffer.
"Ryanair calls on Transport Minister Eamon Ryan to urgently lift this archaic and destructive traffic cap from Dublin Airport, which is a vital piece of national infrastructure," he said.
"If Minister Ryan fails to take action to remove this block on seats, then traffic will stall to the detriment of jobs, tourism and connectivity," he added.
Earlier this month the Irish Aviation Authority (IAA) confirmed there would be a limit of 14.4 million passengers this winter.
It is the first time that the IAA have imposed such a limit.
DAA CEO Kenny Jacobs said they "fully agree" with Ryanair on the need to raise the cap and that the planning process is in play "which will hopefully lead to that happening soon".
