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

Exhibit 99.1

	News Release
CONTACT:	Michael J. McCann
	Chief Financial Officer
	(337) 235-2452

FOR IMMEDIATE RELEASE

PHI, INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2008

LAFAYETTE, LA — November 10, 2008 — PHI, Inc. (The Nasdaq Global Market: PHII (voting) PHIIK (non-voting)) today reported net earnings of $7.9 million ($0.52 per diluted share) on operating revenues of $135.5 million for the quarter ended September 30, 2008. For the same period of 2007, the Company reported net earnings of $8.6 million ($0.56 per diluted share) on operating revenues of $118.4 million. Pre-tax earnings were $13.2 million for the quarter ended September 30, 2008, compared to $13.8 million for the same period in 2007. The quarter ended September 30, 2008 includes a pretax gain on disposition of assets of $0.2 million, and a pre-tax credit of $1.6 million related to the termination of a manufacturer warranty program for a certain model aircraft. The quarter ended September 30, 2007 includes a pretax gain on disposition of assets of $7.0 million.

          Operating revenues for the three months ended September 30, 2008 were $135.5 million, compared to $118.4 million for the three months ended September 30, 2007, an increase of $17.1 million. Oil and Gas operating revenues increased $9.8 million for the quarter ended September 30, 2008, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $7.7 million in the current quarter, compared to the same quarter in 2007, due to increased patient transports and rates in the independent provider programs and increased hospital-based activity due to additional contract awards.

          While flight hours and operating revenues increased in both segments for the quarter ended September 30, 2008, compared to the same quarter 2007, flight hours and operating revenue in our Oil and Gas segment were adversely affected by Hurricanes Gustav and Ike. Following the hurricanes, there was increased flight time as customers were inspecting and repairing their facilities offshore, which in part offset the loss of flight hours from the hurricanes. In addition to affecting flight hours, we incurred damage to some facilities as a result of the hurricanes. This damage is covered by insurance other than deductibles, which is not a material amount.

          Net earnings for the nine months ended September 30, 2008 were $20.7 million, or $1.36 per diluted share, compared to $16.5 million for the nine months ended September 30, 2007, or $1.08 per diluted share. Pre-tax earnings were $34.5 million for the nine months ended September 30, 2008, compared to $26.6 million for the same period in 2007. Earnings for the nine months ended September 30, 2008 included a pre-tax gain on disposition of assets, net, of $4.5 million, an aggregate insurance charge of $2.1 million related to accidents in the second quarter discussed in our second quarter Form 10-Q, and a $1.6 million credit due to termination of the warranty program for certain aircraft. Earnings for the nine months ended September 30, 2007 included a pre-tax gain on disposition of assets, net, of $15.6 million.

          Operating revenues for the nine months ended September 30, 2008 were $382.7 million, compared to $333.1 million for the same period in 2007, an increase of $49.6 million. Oil and Gas operating revenues increased $29.5 million, due to an increase in medium and heavy contracted aircraft and increased flight hours. Operating revenues in the Air Medical segment increased $20.1 million due to increased patient transports and increased rates in the independent provider programs, and increased hospital-based activity due to additional contract awards.

          Flight hours for the nine months ended September 30, 2008 were 113,260, compared to 106,627 for the nine months ended September 30, 2007. The increase was primarily due to increased flight hours associated with increased patient transports in the independent provider programs and increased hospital-based activity in the Air Medical segment and increased heavy and medium aircraft flight hours in the Oil and Gas segment.

          Certain statements in this release constitute 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 are subject to known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, performance (financial or operating) or achievements to differ materially from the results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. These factors include adverse weather, competition, the level of activity in the oil and gas industry (particularly in the Gulf of Mexico) and our ability to continue to grow patient transport volumes. These and other factors are more fully discussed in the Company’s SEC filings under “Risk Factors.”

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 Voting Common Stock and Non-Voting Common Stock are traded on The Nasdaq Global Market (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				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
Operating revenues	$	135,460	$	118,401	$	382,716	$	333,129
Gain on disposition of assets, net		249		6,988		4,453		15,596
Other		29		1,119		532		4,263
		135,738		126,508		387,701		352,988
Expenses:
Direct expenses		110,370		101,427		318,353		291,779
Selling, general and administrative expenses		8,368		7,374		23,291		22,306
Interest expense		3,840		3,895		11,528		12,262
		122,578		112,696		353,172		326,347
Earnings before income taxes		13,160		13,812		34,529		26,641
Income taxes		5,263		5,183		13,811		10,180
Net earnings	$	7,897	$	8,629	$	20,718	$	16,461
Weighted average shares outstanding:
Basic		15,277		15,288		15,277		15,288
Diluted		15,282		15,306		15,281		15,307
Net earnings per share
Basic	$	0.52	$	0.56	$	1.36	$	1.08
Diluted	$	0.52	$	0.56	$	1.36	$	1.08

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Summarized financial information concerning the Company’s reportable operating segments for the quarter and nine months ended September 30, 2008 and 2007 is as follows:

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
	2008			2007			2008			2007
	(Thousands of dollars)						(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	86,689		$	76,853		$	243,352		$	213,843
Air Medical		47,534			39,839			133,105			113,036
Technical Services		1,237			1,709			6,259			6,250
Total operating revenues		135,460			118,401			382,716			333,129
Segment direct expenses
Oil and Gas		68,074			65,805			192,157			185,000
Air Medical		41,125			34,579			121,494			102,220
Technical Services		1,171			1,043			4,702			4,559
Total direct expenses		110,370			101,427			318,353			291,779
Segment selling, general and administrative expenses
Oil and Gas		321			406			976			1,196
Air Medical		2,045			1,882			6,237			5,721
Technical Services		15			12			49			37
Total selling, general and administrative expenses		2,381			2,300			7,262			6,954
Total direct and selling, general and administrative expenses		112,751			103,727			325,615			298,733
Net segment profit
Oil and Gas		18,294			10,642			50,219			27,647
Air Medical		4,364			3,378			5,374			5,095
Technical Services		51			654			1,508			1,654
Total		22,709			14,674			57,101			34,396
Other, net		278			8,107			4,985			19,859
Unallocated selling, general and administrative costs		(5,987	)		(5,074	)		(16,029	)		(15,352	)
Interest expense		(3,840	)		(3,895	)		(11,528	)		(12,262	)
Earnings before income taxes	$	13,160		$	13,812		$	34,529		$	26,641

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Operating Statistics

The following tables present certain non-financial operational statistics for the quarter and nine months ended September 30, 2008 and 2007:

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
Flight hours:
Oil and Gas		29,623		27,893		84,202		82,583
Air Medical		9,860		8,620		28,355		23,636
Technical Services		—		—		703		408
Total		39,483		36,513		113,260		106,627
Air Medical Transports		6,046		5,891		17,468		16,463

	September 30,
	2008		2007
Aircraft operated at period end:
Oil and Gas		152		161
Air Medical		88		72
Technical Services		4		4
Total		244		237

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