8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

Date of report (Date of earliest event reported) March 11, 2008

PHI, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Louisiana
(State or other jurisdiction of
incorporation) 0-9827
(Commission File Number) 72-0395707
(IRS Employer Identification
Number)

2001 SE Evangeline Thruway, Lafayette, Louisiana	70508
(Address of Principal Executive Offices)	(Zip Code)

(800) 235-2452
(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.     Results of Operations and Financial Condition

     The following information is being provided under Form 8-K Item 2.02 and should not be deemed incorporated by reference by any general statement incorporating by reference this Current Report on Form 8-K into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates this information by reference, and none of this information should be deemed “filed” under such acts.

     On March 11, 2008, PHI, Inc. issued a press release announcing its year-end 2007 earnings. The press release is filed herewith as Exhibit 99.1.

Item 9.01.     Financial Statements and Exhibits

     (d) Exhibits

Exhibit No.	Description
99.1	Press Release of PHI, Inc. dated March 11, 2008, announcing earnings for year-ended December 31, 2007.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PHI, Inc.
Date: March 13, 2008	By:	/s/ Michael J. McCann
	Name:		Michael J. McCann
	Title:		Chief Financial Officer

EX-99.1

Exhibit 99.1

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

FOR IMMEDIATE RELEASE

PHI, INC. ANNOUNCES RESULTS FOR THE YEAR ENDED DECEMBER 31, 2007

     LAFAYETTE, LA — March 11, 2008 — PHI, Inc. (“PHI”) today reported a net income of $28.2 million ($1.85 per diluted share) on operating revenues of $446.4 million for the year ended December 31, 2007, compared to a net loss of $0.7 million ($0.05 per diluted share) on operating revenues of $413.1 million for the year ended December 31, 2006. Included in 2007 earnings are gains on disposition of assets of $35.0 million. The prior year’s results include a charge for debt restructuring of $12.8 million. Both 2007 and 2006 had reduced revenue and increased costs related to the pilots’ strike which commenced September 20, 2006. These items are more fully discussed in our Form 10-K.

Operating revenues in the Oil and Gas segment increased $15.4 million due to an increase in medium and heavy aircraft flight hours, and contractual rate increases as compared to 2006 operating revenue. Operating revenues in the Air Medical segment increased $16.2 million, due to increased patient transports and rate increases implemented in 2007.

In 2007, we sold 28 aircraft, primarily consisting of older aircraft that were not in our long term growth plan. We have also taken delivery of new aircraft, consisting of two heavy, 10 medium and 16 light helicopters.

At December 31, 2007, we had orders for six additional transport category and 30 medium and light aircraft for service in the Oil and Gas and Air Medical segments. These aircraft are scheduled for delivery throughout 2008 and 2009.

Certain statements in this release constitute forward-looking statements or statements that 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 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. 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 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)

	For the Year Ended
	December 31,
	2007		2006
Operating revenues	$	446,406	$	413,118
Gain, net on disposition of property and equipment		34,953		1,910
Other		5,098		8,036
		486,457		423,064
Expenses:
Direct expenses		394,421		366,272
Selling, general and administrative		30,226		27,839
Interest expense		16,121		17,243
Loss on debt restructuring		—		12,790
		440,768		424,144
Earnings (loss) before income taxes		45,689		(1,080	)
Income taxes		17,471		(413	)
Net earnings (loss)	$	28,218	$	(667	)
Earnings (loss) per share
Basic	$	1.85	$	(0.05	)
Diluted	$	1.85	$	(0.05	)
Weighted average shares outstanding:
Basic		15,277		13,911
Diluted		15,286		13,911
Total shares outstanding		15,292		15,288

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Summarized financial information concerning the Company’s reportable operating segments for the years ended December 31, 2007, 2006 and 2005:

				Year Ended
				December 31,
	2007			2006			2005
	(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	286,118		$	270,707		$	242,464
Air Medical		149,590			133,397			112,123
Technical Services		10,698			9,014			9,023
Total operating revenues		446,406			413,118			363,610
Segment direct expense
Oil and Gas		250,110			228,797			188,872
Air Medical		137,703			130,412			104,465
Technical Services		6,608			7,063			5,926
Total direct expense		394,421			366,272			299,263
Segment selling, general and administrative expenses
Oil and Gas		1,531			1,150			1,181
Air Medical		7,883			7,384			6,503
Technical Services		59			38			43
Total selling, general and administrative expenses		9,473			8,572			7,727
Total direct and selling, general and administrative expenses		403,894			374,844			306,990
Net segment profit
Oil and Gas		34,477			40,760			52,411
Air Medical		4,004			(4,399	)		1,155
Technical Services		4,031			1,913			3,054
Total		42,512			38,274			56,620
Other, net		40,051			9,946			3,230
Unallocated selling, general and administrative expenses		(20,753	)		(19,267	)		(17,169	)
Interest expense		(16,121	)		(17,243	)		(20,448	)
Loss on debt restructuring		—			(12,790	)		—
Earnings (loss) before income taxes	$	45,689		$	(1,080	)	$	22,233
Flight hours
Oil and Gas		107,812			119,503			126,591
Air Medical		31,341			29,980			26,619
Technical Services		1,216			1,497			1,433
Total		140,369			150,980			154,643
Air Medical Transports		21,710			20,808			17,200
Aircraft operated at period end
Oil and Gas		163			164			167
Air Medical		70			68			64
Technical Services		4			4			4
Total		237			236			235

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