Exhibit 99.1

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

FOR IMMEDIATE RELEASE

PHI, INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2006

LAFAYETTE, LA – November 9, 2006 – PHI, Inc. (“PHI”) today reported net earnings of $5.1 million ($0.33 per diluted share) on operating revenues of $109.3 million for the quarter ended September 30, 2006. For the same period of 2005, PHI reported net earnings of $5.5 million ($0.53 per diluted share) on operating revenues of $100.0 million. Fully diluted shares outstanding at September 30, 2006, were 15,306,000, compared to 10,295,000 at September 30, 2005. Earnings before tax for the quarter were $8.5 million compared to $9.1 million for the quarter ended September 30, 2005.

Although revenue increased for the quarter, the estimated effect on revenue of the strike by some of our pilots, which began on September 20, was a decrease of $2.2 million in the Domestic Oil and Gas and $0.8 million in the Air Medical segments as compared to amounts that would have been realized based on pre-strike business activity. In addition, there were certain costs incurred as a result of the strike of $0.9 million in the month of September. These amounts were partially offset by the reversal of an accrual for incentive compensation of $1.0 million, as it is not probable that we will meet the requirements of the plan. The negative effects of the strike diminished in October, and we expect it to continue to diminish in future months, as we increase our pilot workforce by hiring, training and deploying new pilots, and as striking pilots return to work voluntarily or an agreement is reached with the remaining striking pilots.

As we reported in a press release September 20, 2006, the pilots represented by the OPEIU (the Office and Professional Employees International Union), commenced a general strike effective September 20, 2006, which affected both the Domestic Oil and Gas and Air Medical segments. Approximately 237 pilots initially participated in this strike, out of a total pilot work force of 564, which excludes pilots on sick leave or leave of absence. Approximately 176 pilots currently remain on strike, as 42 pilots have returned to work and others took permanent positions elsewhere. We have been hiring additional pilots since September 1, 2006, following implementation of a new compensation package that is identical to the package we offered in our negotiations with OPEIU and we believe this package is superior to those provided by our principal competitors in the Gulf of Mexico and in the air medical industry. To date, through our hiring program and the return of striking pilots, we have increased our total pilot workforce to 454, 17 of whom are still in training, and we continue to process new applications. As a result, less than one-half of the pilot positions are unfilled when compared to the initial number of striking pilots. The flight qualifications and experience of those being hired is equal to or exceeds PHI’s requirements in all cases.

We believe the workplace today is enhanced by the attitude of the working pilots, and among the maintenance and support crews in the field. They are noticeably enthusiastic about the “new” PHI work environment and clearly dedicated to maintaining PHI’s reputation for safe operations.

For additional information regarding the effects of the strike, please refer to our Form 10-Q for September 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).

###

PHI, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006			2005
Operating revenues	$	109,315	$	100,018	$	317,844		$	261,040
Gain (loss) on disposition of property and equipment, net		621		26		(541	)		486
Other		2,659		861		6,076			1,155
		112,595		100,905		323,379			262,681
Expenses:
Direct expenses		93,224		80,184		269,492			217,115
Selling, general and administrative expenses		6,795		6,561		20,203			17,263
Interest expense		4,039		5,061		13,241			15,337
Loss on debt restructuring		—		—		12,790			—
		104,058		91,806		315,726			249,715
Earnings before income taxes		8,537		9,099		7,653			12,966
Income taxes		3,415		3,639		3,061			5,186
Net earnings	$	5,122	$	5,460	$	4,592		$	7,780
Weighted average shares outstanding:
Basic		15,288		10,271		13,447			7,288
Diluted		15,306		10,295		13,463			7,314
Net earnings per share
Basic	$	0.34	$	0.53	$	0.34		$	1.07
Diluted	$	0.33	$	0.53	$	0.34		$	1.06

###

Summarized financial information concerning the Company’s reportable operating segments for the quarter and nine months ended September 30, 2006 and 2005 is as follows:

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
	(Thousands of dollars)						(Thousands of dollars)
Segment operating revenues
Domestic Oil and Gas	$	66,240		$	58,952		$	194,111		$	155,392
Air Medical		35,735			33,905			100,042			82,989
International		5,438			6,766			18,660			19,565
Technical Services		1,902			395			5,031			3,094
Total operating revenues		109,315			100,018			317,844			261,040
Segment direct expenses
Domestic Oil and Gas		55,407			46,773			158,306			126,116
Air Medical		32,560			28,701			94,938			75,799
International		4,137			4,358			12,749			12,824
Technical Services		1,120			352			3,499			2,376
Total direct expenses		93,224			80,184			269,492			217,115
Segment selling, general and administrative expenses
Domestic Oil and Gas		282			256			822			704
Air Medical		1,758			1,741			5,403			4,645
International		20			118			81			182
Technical Services		13			1			71			5
Total selling, general and administrative expenses		2,073			2,116			6,377			5,536
Total direct and selling, general and administrative expenses		95,297			82,300			275,869			222,651
Net segment profit
Domestic Oil and Gas		10,551			11,923			34,983			28,572
Air Medical		1,417			3,463			(299	)		2,545
International		1,281			2,290			5,830			6,559
Technical Services		769			42			1,461			713
Total		14,018			17,718			41,975			38,389
Other, net		3,280			887			5,535			1,641
Unallocated selling, general and administrative costs		(4,722	)		(4,445	)		(13,826	)		(11,727	)
Interest expense		(4,039	)		(5,061	)		(13,241	)		(15,337	)
Loss on debt restructuring		—			—			(12,790	)		—
Earnings before income taxes	$	8,537		$	9,099		$	7,653		$	12,966

###

Operating Statistics

The following tables present certain non-financial operational statistics for the quarter and nine months ended September 30, 2006 and 2005:

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Flight hours:
Domestic Oil and Gas		28,678		29,896		83,921		80,292
Air Medical		7,986		7,811		22,866		19,384
International		2,870		3,989		10,114		11,567
Total		39,534		41,696		116,901		111,243
Air Medical Transports		5,661		5,018		15,794		12,489

	September 30,
	2006		2005
Aircraft operated at period end:
Domestic Oil and Gas		150		158
Air Medical		69		60
International		16		16
Total		235		234

# # #