The decrease in losses at CityJet came despite its revenues having dropped by 8% from €179.8m to €165m.
The directors said they were “delighted”.
The turnaround came from efficiency gains and by focusing on on chartered flight, as well as cutting costs, the airline said.
It was sold by Air France to Germany’s Intro Aviation, in 2014.
This week, the airline narrowly avoided a pilots’ strike when Unite deferred plans after agreeing to talks at the Workplace Relations Commission.
On the 2015 accounts, executive chairman Pat Byrne said yesterday: “These results clearly illustrate the improving trading position of CityJet as we continue to reshape the business into a profitable and sustainable aviation operator.”
Revenues this year were 30% higher than 2015, he said.
“In 2015, we sowed the seeds of this restructuring, ordering new aircraft, acquiring an airline in Finland and securing long-term wet-lease business to de-risk us from the volatility of the air transport markets,” Mr Byrne said.
Cityjet made €14m of last year’s total €165m revenues in Ireland. The company’s largest market is France, where it had €53m of its sales.
Staff costs in the year totalled €34m, while directors were paid €1.58m, including a €478,000 payment for loss of office during the year.
Former CEO Christine Ourmieres resigned in March 2015. Two other directors resigned in March 2016.
Mr Byrne said: “We have taken delivery of eight new CRJ900 jets, which we operate for Scandinavian Airlines, with four more CRJ900s arriving next March. We also took delivery of the first three new Superjet SSJ100s, from an order of 15, which we are we very successfully placing in the charter and wet-lease markets.”
He said half of its 26-airline fleet was providing so-called wet-lease services for other airlines.
It plans to take delivery of nine more aircraft next year.
“Clearly this is a growing business, with more growth to come. The 2015 results show that the trajectory we are on is delivering results,” Mr Byrne said.
CityJet employs over 900 staff, with bases at Amsterdam, Dublin, London, Stockholm, Paris, and Helsinki.
Four aircraft are based in Paris operating services for Air France.
Eight planes are based in Stockholm and Helsinki operating on behalf of SAS.