The gateway has welcomed 3.65 million passengers in the 12 months to December, representing an 8% increase compared to 2013.
Airport bosses have attributed the success to increased confidence among corporates to mobilise their workforce, helping to return business travel to pre-recession levels.
In a further indication of economic recovery, the airport has also seen an increase in leisure travellers choosing a better travelling experience over ‘no frills’ alternatives.
Declan Collier, CEO of London City Airport, says: “These figures are undoubtedly a sign of continuing economic confidence.
“More people are travelling and more are making choices about how they travel - choosing the right travel experience to make the passenger journey as simple and fast as possible.
“2014 was a great year for the airport, outperforming forecasts. The numbers show that demand for air travel continues to increase and LCY needs to be able to accommodate that demand without compromising our trademark levels of service and amenity.
“This is why it is so important that we are allowed to develop our infrastructure, creating 1,500 jobs, millions of pounds worth of economic benefit and providing much-need air connectivity for the burgeoning business and residential sectors of east and central London in the process.”
British Airways cemented its position as the biggest airline at London City Airport in early 2014 by adding three new aircraft to its fleet - bringing the total to 17 - increasing frequencies and introducing new routes.
Flybe launched flights from LCY in October, boosting connectivity to the UK’s regions and is aiming to carry 500,000 passengers in 2015.
London City Airport is awaiting planning permission to develop its existing infrastructure with the construction of seven additional aircraft stands, a parallel taxi-lane and a new arrivals terminal.
The airport expects to welcome about six million passengers per year by 2023.