DENVER , May 8 /PRNewswire-FirstCall/ -- Air Methods Corporation (Nasdaq: AIRM), the largest air medical transportation company in the world, reported financial results for the first quarter ended March 31, 2008 and provided an update on April 2008 flight volumes. For the quarter, revenue increased 45.0% to $118.1 million from $81.5 million in the year-ago quarter. Net income for the first quarter of 2008 was $2.3 million or $0.18 per diluted share, compared with net income of $3.7 million or $0.30 per diluted share in the first quarter of 2007. Current quarter net income includes an after-tax gain of $0.8 million, or $0.06 per diluted share, generated from disposition of aircraft.

As previously announced, the decrease in net income was primarily attributed to decreases in community-based patient transports as a result of increased weather cancellations, and higher than anticipated maintenance and fuel expenditures. Community-based patient transports for bases in operation greater than one year (Same-Base Transports) decreased by 577 transports, while weather cancellations for these same bases increased by 636, as compared with the prior-year quarter. Same-Base Transports and weather cancellations exclude bases acquired from CJ Systems Aviation Group, Inc. (CJ) effective October 1, 2007 . Aircraft maintenance expense during the quarter, excluding aircraft acquired in the CJ acquisition and those added after March 31, 2007 , increased 35.7% or $4.0 million as compared with the prior-year quarter. Fuel expense per flight hour increased 44%, or approximately $1.1 million, as compared with the prior-year period.

Net revenue per community-based transport increased 2.8% from $6,443 in the prior-year quarter to $6,622 in the current-year quarter. The current-year quarterly revenue per transport was slightly lower than anticipated due to inherent fluctuations in payer mix and differences between actual collections and previous estimates. Total community-based patient transports were 10,570 in the current year quarter, compared to 8,284 in the first quarter of 2007.

For the first quarter, community-based revenue increased 29.8% to $69.3 million compared to $53.4 million in the prior year, while segment net income decreased 26.6% to $5.8 million from $7.9 million. Hospital-based flight revenue increased 72.4% from $26.2 million to $45.2 million in the current-year period, while segment net income remained unchanged at $1.8 million for both current and prior periods. The increase in revenue is primarily attributed to the acquisition of CJ, which occurred on October 1, 2007 . The decrease in segment net income for both divisions as a percentage of revenue is primarily attributed to the matters discussed above.

The Company also provided an update on April 2008 flight volume. Total community-based transports were 3,722 during April 2008 compared with 3,071 in April 2007 . Same-Base Transports during the month of April decreased by 254 transports or 8.6% as compared with April 2007 . The decrease in transports was almost entirely attributed to an increase of 230 in weather cancellations for bases in operation greater than one year and excluding bases acquired from CJ.

Aaron Todd , CEO, stated, "As we had previously announced, the factors that affected our first quarter results are inherent within our operations. Weather and maintenance fluctuations can vary widely from quarter-to-quarter and are not necessarily predictive of future quarters. The variation in our community-based transport revenue is consistent with variations in recent quarters and is not attributed to any specific changes in reimbursement trends. The increase in fuel prices does have direct relevance to future quarters. As previously announced, the Company has increased its pricing for community-based patient transports by 7% effective May 1st to offset the expected impact of higher fuel prices. The Company continues to expect healthy growth in year-over-year earnings per share dependent on more moderate weather cancellations and maintenance activities and consistent reimbursement trends for the remainder of the year."

The Company will discuss these results in a conference call scheduled today at 4:15 p.m. Eastern. Interested parties can access the call by dialing (888) 396-5640 (domestic) or (706) 643-0580 (international) or by accessing the web cast at http://www.airmethods.com. A replay of the call will be available at (800) 642-1687 (domestic) or (706) 645-9291 (international), access number 43095354, for 3 days following the call and the web cast can be accessed at http://www.airmethods.com for 30 days.