PHI (PHIG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

	News Release
CONTACT:	Michael J. McCann
	CFO and Treasurer
	(337) 235-2452

FOR IMMEDIATE RELEASE

PHI, INC. ANNOUNCES RESULTS
FOR THE SECOND QUARTER ENDED JUNE 30, 2007

     LAFAYETTE, LA — August 9, 2007 — PHI, Inc. (“PHI”) today reported net earnings of $7.2 million ($0.47 per diluted share) on operating revenues of $113.0 million for the quarter ended June 30, 2007. For the same period of 2006, the Company reported a net loss of $2.8 million ($0.19 per diluted share) on operating revenues of $107.2 million. Earnings before tax for the quarter ended June 30, 2007 were $11.8 million and include a gain on disposition of assets of $6.1 million. Earnings before tax for the quarter ended June 30, 2006 was a loss of $4.6 million and included a loss on debt restructuring of $12.8 million.

Flight hours for the quarter ended June 30, 2007 were 36,628, compared to 39,923 for the quarter ended June 30, 2006. The decrease was due to a reduction in flight hours in our foreign operations, and continuing effects of the strike on our domestic operations through the second quarter related to pilot staffing levels.

For the six months ended June 30, 2007, net earnings were $7.8 million ($0.51 per diluted share) on operating revenues of $214.7 million. This compares to a net loss of $0.5 million ($0.04 per diluted share) on operating revenues of $208.5 million for the same six-month period in 2006.

Total flight hours were 70,114 for the six months ended June 30, 2007 compared to 77,367 for the six months ended June 30, 2006.

     Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “anticipate,” “estimate,” “project,” “intend,” “expect,” “should,” “believe,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company’s SEC filings.

PHI provides helicopter transportation and related services to a broad range of customers including the oil and gas industry, air medical industry and also provides third-party maintenance services to select customers. PHI Common Stock is traded on The Nasdaq National Market System (symbols PHII and PHIIK).

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PHI, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Thousands of dollars and shares, except per share data)

	Quarter Ended					Six Months Ended
	June 30,					June 30,
	2007		2006			2007		2006
Operating revenues	$	112,975	$	107,157		$	214,728	$	208,529
Gain (loss) on disposition of assets, net		6,074		(1,392	)		8,608		(1,162	)
Other		1,490		2,497			3,144		3,417
		120,539		108,262			226,480		210,784
Expenses:
Direct expenses		97,119		89,211			190,352		176,267
Selling, general and administrative expenses		7,395		6,724			14,932		13,409
Interest expense		4,260		4,129			8,367		9,202
Loss on debt restructuring		—		12,790			—		12,790
		108,774		112,854			213,651		211,668
Earnings (loss) before income taxes		11,765		(4,592	)		12,829		(884	)
Income taxes		4,596		(1,837	)		4,997		(354	)
Net earnings (loss)	$	7,169	$	(2,755	)	$	7,832	$	(530	)
Weighted average shares outstanding:
Basic		15,288		14,579			15,288		12,512
Diluted		15,307		14,579			15,307		12,512
Net earnings (loss) per share
Basic	$	0.47	$	(0.19	)	$	0.51	$	(0.04	)
Diluted	$	0.47	$	(0.19	)	$	0.51	$	(0.04	)

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Summarized financial information concerning the Company’s reportable operating segments for the quarter and six months ended June 30, 2007 and 2006 is as follows:

	Quarter Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
	(Thousands of dollars)						(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	71,690		$	72,198		$	136,990		$	140,752
Air Medical		39,652			33,596			73,197			64,307
Technical Services		1,633			1,363			4,541			3,470
Total operating revenues		112,975			107,157			214,728			208,529
Segment direct expenses
Oil and Gas		61,760			56,905			119,195			110,756
Air Medical		33,813			30,758			67,641			62,377
Technical Services		1,546			1,548			3,516			3,134
Total direct expenses		97,119			89,211			190,352			176,267
Segment selling, general and administrative expenses
Oil and Gas		399			257			790			649
Air Medical		1,898			1,807			3,839			3,645
Technical Services		17			7			25			9
Total selling, general and administrative expenses		2,314			2,071			4,654			4,303
Total direct and selling, general and administrative expenses		99,433			91,282			195,006			180,570
Net segment profit (loss)
Oil and Gas		9,531			15,036			17,005			29,347
Air Medical		3,941			1,031			1,717			(1,715	)
Technical Services		70			(192	)		1,000			327
Total		13,542			15,875			19,722			27,959
Other, net		7,564			1,105			11,752			2,255
Unallocated selling, general and administrative costs		(5,081	)		(4,653	)		(10,278	)		(9,106	)
Interest expense		(4,260	)		(4,129	)		(8,367	)		(9,202	)
Loss on debt restructuring		—			(12,790	)		—			(12,790	)
Earnings (loss) before income taxes	$	11,765		$	(4,592	)	$	12,829		$	(884	)

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Operating Statistics

The following tables present certain non-financial operational statistics for the quarter and six months ended June 30, 2007 and 2006:

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Flight hours:
Oil and Gas		28,604		32,198		54,690		62,015
Air Medical		8,024		7,725		15,016		14,880
Technical Services		—		—		408		472
Total		36,628		39,923		70,114		77,367
Air Medical Transports		5,650		5,311		10,572		10,133

	June 30,
	2007		2006
Aircraft operated at period end:
Oil and Gas		163		163
Air Medical		73		67
Technical Services		4		4
Total		240		234

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