Almost 30 million passenger journeys were made on the Luas in Ireland's capital last year, figures show.
The Railway Procurement Agency (RPA), which runs the light rail system in Dublin, said it was a record number.
Rory O'Connor, RPA chief executive, said the success of the Luas supported plans for it to be extended.
"We have worked hard to reduce costs on the one hand and to increase passenger numbers on the other, and we are delighted with the increase in passenger numbers for 2012, which certainly bucks the trend," he added.
Passenger numbers on the Luas were up by around 300,000 last year compared with 2011.
When the final figures are tallied, it is expected that 29.4 million passenger journeys will have been made in 2012, a rise from just over 29 million the previous year.
The busiest times for the Luas were the end of August, during the Tall Ships festival, and during the Christmas season last month.
Permission was granted last August for a 5.6km extension to the Luas Green Line between St Stephen's Green and Broombridge.
The new line will link the Red and Green lines and is expected to generate an extra 10 million passenger journeys a year.
The RPA said the line is due to be in operation by 2017.