Exhibit 99.1

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

FOR IMMEDIATE RELEASE

PHI, INC. ANNOUNCES RESULTS

FOR THE FIRST QUARTER ENDED MARCH 31, 2006

     LAFAYETTE, LA – May 5, 2006 – PHI, Inc. (Nasdaq National Market System: PHII (voting) PHIIK (non-voting)) today reported net earnings of $2.2 million ($0.21 per diluted share) on operating revenues of $101.4 million for the three months ended March 31, 2006. For the same period of 2005, the Company reported net earnings of $0.4 million ($0.7 per diluted share) on operating revenues of $74.2 million.

     Operating revenues increased in all segments, except for Technical Services, in the current quarter compared to the same quarter of 2005. The revenue increase was due to increased flight hours resulting from increased customer demand for aircraft, due primarily to increased exploration and production activity by our customers in the Gulf of Mexico. Although flight hours and revenue increased when comparing the first quarter 2006 to the first quarter 2005, weather adversely affected first quarter 2006 results to a greater extent than the prior year period in both our Domestic Oil and Gas and Air Medical segments.

     Earnings before tax for the three months ended March 31, 2006, were $3.7 million compared to $0.6 million for the three months ended March 31, 2005. Earnings for March 31, 2005 included an insurance premium credit of $2.8 million related to favorable loss experience.

     Operating revenues for the first quarter 2006 were $101.3 million compared to $74.2 million for 2005, an increase of $27.1 million. Domestic Oil and Gas operating revenues increased $17.1 million due to an increase in flight hours driven by customer requirements for additional aircraft. Operating revenues in the Air Medical segment increased $9.9 million due to the additional locations established during 2005. In addition, the International segment had an increase of $0.6 million. Technical Services revenues decreased $0.5 million.

     Direct operating expense was $87.1 million for the three months ended March 31, 2006 compared to $64.0 million for the same period ended March 31, 2005, an increase of $23.1 million. Direct expense increased $13.2 million in the Domestic Oil and Gas segment due to increased activity, and $10.3 million in the Air medical segment, due to increased locations. These increases were partially offset by decreases of $0.2 million in the International segment and $0.3 million in the Technical Services segment.

     Domestic Oil and Gas segment gross profits increased by $3.7 million to $11.5 million. Our Air Medical segment had a $2.7 million operating loss, compared to a $1.9 million loss for the prior year period, due primarily to start-up costs and adverse weather conditions.

     On April 12, 2006, we completed the sale of 4,287,920 non-voting common shares at $35.00 per share. Proceeds from the offering were $142.0 million, net of underwriting fees. On May 1, 2006, we completed the sale of the over-allotment of 578,680 shares also at $35.00 per share. Proceeds from the over-allotment were $19.1 million, also net of underwriting fees. Proceeds of the offering will be used to fund the acquisition of aircraft to be delivered in 2006 and 2007.

     Additionally, on April 12, 2006, we issued $200 million of 7 1/8% Senior Notes due April 15, 2013. Proceeds were used to retire $184.8 million of the existing 9 3/8% Senior Notes tendered April 12, 2006, in accordance with the early tender offer, at a total cost of $201.6 million including an early call premium and accrued interest. We also redeemed the remaining $15.2 million of Senior Notes outstanding on May 1, 2006, at a redemption price of 104.688% of the face amount plus accrued interest. As a result of the early redemption of the 9 3/8% Senior Notes, we will record a pretax charge of $12.8 million ($7.7 million, net of tax) in the quarter ended June 30, 2006, which consists of $9.8 million early call premium, $2.6 million of unamortized issuance costs, and $0.4 million underwriting fees.

     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)

	For the Quarter Ended
	March 31,
	2006		2005
Operating revenues	$	101,372	$	74,239
Gain, net on disposition of property and equipment, net		230		646
Other		919		96
		102,521		74,981
Expenses:
Direct expenses		87,055		64,036
Selling, general and administrative expenses		6,685		5,229
Interest expense		5,073		5,117
		98,813		74,382
Earnings before income taxes		3,708		599
Income taxes		1,483		240
Net earnings	$	2,225	$	359
Weighted average common shares outstanding:
Basic		10,422		5,383
Diluted		10,439		5,467
Earnings per common share:
Basic	$	0.21	$	0.07
Diluted	$	0.21	$	0.07

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Summarized financial information concerning the Company’s reportable operating segments for quarter and three months ended March 31, 2006 and 2005:

	Quarter Ended
	March 31,
	2006			2005
	(Thousands of dollars)
Segment operating revenues
Domestic Oil and Gas		61,940			44,867
Air Medical		30,711			20,784
International		7,648			7,018
Technical Services		1,073			1,570
Total operating revenues		101,372			74,239
		—			—
Segment direct expense
Domestic Oil and Gas		50,100			36,850
Air Medical		31,619			21,324
International		4,446			4,660
Technical Services		890			1,202
Total direct expense		87,055			64,036
Segment selling, general and administrative expense
Domestic Oil and Gas		349			246
Air Medical		1,838			1,366
International		44			44
Technical Services		1			3
Total selling, general and administrative expense		2,232			1,659
Total direct and selling, general and administrative expense		89,287			65,695
Net segment profit
Domestic Oil and Gas		11,491			7,771
Air Medical		(2,746	)		(1,906	)
International		3,158			2,314
Technical Services		182			365
Total		12,085			8,544
Other, net		1,149			742
Unallocated selling, general and administrative costs		(4,453	)		(3,570	)
Interest expense		(5,073	)		(5,117	)
Earnings before income taxes		3,708			599

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Operating Statistics

The following tables present certain non-financial operational statistics for the quarter ended March 31, 2006 and 2005:

	Quarter Ended
	March 31,
	2006		2005
Flight hours:
Domestic Oil and Gas		26,092		22,306
Air Medical		7,155		4,630
International		4,197		3,872
Total		37,444		30,808
Air Medical Transports		4,822		3,147
Aircraft operated at period end:
Domestic Oil and Gas		155		153
Air Medical		66		51
International		16		17
Total		237		221

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