MAJOR festivals in Dublin city, as well as a boost during the Christmas shopping season, aided the increase.
Provisional figures from the Railway Procurement Agency (RPA) outline that 29.4 million passenger journeys were made on Luas in 2012.
The transport company said that the figure was particularly heartening when viewed in light of the economy.
"These record numbers have been achieved despite losing a week's service due to a major fire adjacent to the Red Line early in the year," the RPA added.
The past year was also very significant for the future development of Luas. In August, An Bord Pleanala granted a Railway Order for the 5.6km extension to the Luas Green Line between Saint Stephen's Green and Broombridge.