The Tube carried its highest number of passengers and ran more trains than ever in 2004, new figures released on Wednesday show.
LU operated 95.3% of all scheduled services last year
A total of 976 million passengers used London Underground (LU) in the financial year 2004-5 - beating the previous high of 970 million in 2000-1.
Customer satisfaction scores had also improved and were at the highest ever.
Last year was the first full year in which the Tube was under the control of Transport for London (TfL).
Meanwhile, LU was responsible for the running of the trains and private train firms Metronet and Tube Lines responsible for maintenance and enhancements.
Despite weekend engineering work and signal failures, customer satisfaction was the highest since measurements began in 1990-91, with LU recording an overall satisfaction score of 78 out of 100 - two points better than in 2003-04.
LU managing director Tim O'Toole said: "TfL is investing £10bn over the next five years to improve transport in London, more than half of that in the Tube.
"These improvements are being delivered thanks to that investment and the hard work and dedication of Tube staff.
He said that LU continues to demand improvements from Tube Lines and Metronet in their maintenance of trains, tracks, signals and stations.
London Mayor Ken Livingstone has congratulated the firm on its work.
"We all know that years of neglect have taken an enormous toll on the Tube's performance, but these figures show the new management team are starting to make real progress," he said.