Edinburgh Trams said it carried 5.38 million passengers in its second 12 months of operation, an increase of 9.3% on the previous year, when 4.92 passengers were carried.
The latest passenger numbers are 340,000 ahead of the target for the period, Edinburgh Trams said.
Edinburgh’s tram system connects the city centre to Edinburgh Airport on the western edge of the Scottish capital.
George Lowder, chief executive of Transport for Edinburgh, said: “These results are hugely encouraging …
“We are concentrating this year on enhancement of the existing service and are certainly not going to be complacent.”
Concessionary card holders account for 8.2% of tram passengers.
Edinburgh Trams said it received a 97% overall customer satisfaction rating following an independent UK wide survey by Passenger Focus and operated with 99% service reliability.
Councillor Lesley Hinds, chair of transport for Edinburgh, said: “There is no doubt Edinburgh Trams is going from strength to strength, as these latest passenger figures show, alongside consistently high customer satisfaction ratings.
“This is thanks to a great team of staff, who over the last two years have helped make Edinburgh Trams the service it is today, and I look forward to continuing our journey as it develops and expands.”