Sydney Airport's curfew is inefficient, exacerbates unexpected delays, and leads to more noise, according to a report released by the Productivity Commission.

Key points: Sydney's Airport is one of four in Australia to have a curfew

Sydney's Airport is one of four in Australia to have a curfew The report found possible changes to the movement cap would make the facility more efficient

The report found possible changes to the movement cap would make the facility more efficient A second curfew-free airport at Badgery's Creek is due to be operational by late 2026

The report found the curfew — which prohibits aircraft from taking off or landing between 11pm and 6am — comes at the expense of airport efficiency.

The Productivity Commission, an independent research and advisory agency, released the 40-page draft report today examining the economic regulation of Australian airports.

"The movement cap and curfew [in Sydney] sometimes result in more noise and emissions, in spite of their noise reduction objective," the report said.

"The objective of managing the effect of aircraft noise on local residents should be balanced with reforms that benefit the community at large, including through improvements to the efficiency of Sydney Airport."

The report found planes arriving earlier than scheduled could be forced to wait in the air, rather than landing and breaching the cap or curfew, leading to more noise, emissions and unnecessary fuel burn.

Airport movements are capped at 80 arrivals and departures per hour, measured every 15-minutes.

Stanmore resident Tony lives under one of the airport's flight paths, and said he wanted the curfew to stay.

"We have a short curfew between 11pm at night and 6am in the morning and that should be retained because people have to be considered," he said.

"The Productivity Commission is looking at the whole thing typically as an economic issue, about the efficiency and the cost, we must think about the people."

Curfew makes airport less efficient

Construction on Sydney's second airport, at Badgery's Creek, began last year and is due to be completed by late 2026. That facility will be curfew-free.

The 40-page draft report also found the curfew at Sydney Airport led to longer delays during unexpected incidents like weather events.

During those events, aircraft have to wait on the ground or in the air until they are allowed to take off or land to avoid breaching the cap.

"Aircraft movements can be prohibited entirely when delays stretch toward the curfew period," it said.

"Delays interfere with passengers' schedules, create costs for airlines and have flow-on effects for Australia's aviation network more broadly due to the high number of aircraft that pass through Sydney Airport."

The Productivity Commission said possible changes to the movement cap would make Sydney Airport more efficient.

"Options include removing the cap on actual movements but retaining a cap on scheduled movements or adopting noise-based criteria for determining which aircraft are permitted to operate during the curfew, rather than the current prescribed list of aircraft types," it said.

Sydney Airport CEO Geoff Culbert said he agreed with the report's findings.

"The Productivity Commission has today made considered and sensible recommendations about Sydney Airport's operating restrictions and we support ongoing discussions with the community about this issue," Mr Culbert said.