Aegean Airlines trimmed its full-year net loss to €10.5 million ($13.5 million) in 2012, compared with negative €27.2 million the previous year.
The Greek carrier reported a 2% reduction in revenue to €653 million, delivering EBITDA of €2.9 million.
Load factor increased by 5 percentage points year-on-year to 74% in 2012, with passenger numbers falling from 6.5 million to 6.1 million.
Declining passenger numbers were most pronounced on domestic routes, falling 12% compared with 2011.
International traffic to and from Athens also fell 6%, whereas footfall at other regional airports increased by 10%.
"Our efforts on improving our efficiency and cost structure are ongoing within an environment of declining domestic demand," says managing director Dimitris Gerogiannis.
"The gradual recovery of incoming leisure traffic as of July - as well as our cost management efforts - have contributed to the improvement of our results."
Gerogiannis adds that further progress will be contingent on economies of scale derived from Aegean's proposed takeover of Olympic Air, which remains subject to EU approval.