Offshore Logistics, Inc.
224 Rue De Jean – 70508
Post Office Box 5C
Lafayette, Louisiana 70505
Tel: (337) 233-1221
Fax: (337) 235-6678

EXHIBIT 99.1

PRESS RELEASE

OFFSHORE LOGISTICS, INC.
ANNOUNCES EARNINGS FOR FOURTH FISCAL QUARTER
AND YEAR ENDED MARCH 31, 2004

LAFAYETTE, LOUISIANA (June 7, 2004) – Offshore Logistics, Inc. (NYSE: OLG) today reported net income for the fiscal year ended March 31, 2004 of $53.1 million, or $2.29 per diluted share, on revenues of $567.6 million, compared to net income of $43.1 million, or $1.77 per diluted share, on revenues of $558.8 million for the fiscal year ended March 31, 2003. Included in net income for the fiscal year ended March 31, 2004 is a non-cash curtailment gain of $21.7 million ($15.7 million after taxes) or $0.65 per diluted share, resulting from changes made to the Company’s pension plan for certain United Kingdom based employees. These changes, effective February 1, 2004, convert benefits for future employee service from a defined benefit arrangement to a defined contribution arrangement. Without this non-cash gain, earnings per diluted share would have been $1.64 for the year ended March 31, 2004.

Net income for the quarter ended March 31, 2004 was $33.5 million, or $1.47 per diluted share on revenues of $153.0 million, compared to net income of $9.1 million or $0.38 per diluted share, on revenues of $138.7 million for the quarter ended March 31, 2003. Included in net income for the quarter ended March 31, 2004 is the non-cash gain of $21.7 million ($15.7 million after taxes) or $0.69 per diluted share discussed above, cost savings from the ongoing operation of the pension plan of $2.7 million ($2.0 million after taxes) or $0.09 per diluted share, retroactive rate settlements with certain North Sea customers of $3.4 million ($2.5 million after taxes) or $0.11 per diluted share, and insurance premium rebates of $2.5 million ($1.8 million after taxes) or $0.08 per diluted share. Without these four items, earnings per diluted share would have been $0.50 for the quarter ended March 31, 2004.

George Small, CEO and President of Offshore Logistics, Inc., said “We are pleased with our fiscal year and fourth quarter results. Disregarding the non-cash pension plan gain and the other infrequent income items, our operating performance by business unit has held up well, despite weak exploration and development activities by our customers. North American Operations have benefited from a rate increase phased in throughout fiscal 2004 as well as better cost management. The North Sea business unit has focused on cost reduction measures to counteract declining activity levels. The pension cost savings of $2.7 million is a direct result of this effort. These measures, including the previously announced staff reductions, will allow us to remain competitive in the difficult North Sea market. Our margins in the International business unit are still below where we would like them to be, and we continue to focus on making necessary improvements.”

Small continued, “We believe we are well positioned to take advantage of an upturn in industry activity, in any of the markets we serve, when it occurs. Regardless, we are positioning ourselves to operate profitably at current activity levels and will continue to pursue growth opportunities as they arise in both existing and new geographies.”

At March 31, 2004, the Company’s consolidated balance sheet reflected $446.1 million in shareholders’ investment, $85.7 million in cash and $255.5 million of indebtedness.

OLOG will conduct a telephonic conference to discuss its year-end results with analysts, investors and other interested parties at 10:00 a.m. Central Time on Tuesday, June 8, 2004. Individuals wishing to access the conference call should dial (877) 822-9020 for domestic callers and (706) 679-7181 for international callers, approximately five to ten minutes prior to the start time. Please reference the Offshore Logistics, Inc. conference call hosted by George Small Conference ID No. 7412289. A replay of the conference call will be available two hours after completion of the teleconference. To hear that recording, dial (800) 642-1687 for domestic callers and (706) 645-9291 for international callers, and enter Conference ID number 7412289. The replay will be available until Tuesday, June 15, 2004.

Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Egypt and the Far East. The Company’s Common Stock is traded on the New York Stock Exchange under the symbol OLG.

The tabulated results for the periods ended March 31, 2004 and 2003, are as follows (amounts in thousands, except earnings per share):

   

   

Three Months Ended
March 31,
 Year Ended
March 31,
2004
 2003
 2004
 2003
Revenue   $ 152,967   $ 138,705   $ 567,592   $558,844  
Net Income  $ 33,546  $ 9,147  $ 53,104  $  43,130  
BASIC: 
Earnings per common share  $ 1.48  $ 0.41  $ 2.36  $ 1.92  
Weighted average number of 
common shares outstanding  22,600  22,505  22,545  22,429  
DILUTED: 
Earnings per common share  $ 1.47  $ 0.38  $ 2.29  $ 1.77  
Weighted average number of 
common shares outstanding 
and assumed conversions  22,787  26,593  24,013  26,559  

Selected operating data:

Three Months Ended
March 31,
 Twelve Months Ended
March 31,
2004
 2003
 2004
 2003
(in thousands, except flight hours)
Flight hours (excluding unconsolidated affiliates):                    
   Helicopter activities:  
     North American Operations    29,094    26,686    123,488    123,565  
     North Sea Operations    9,602    10,318    43,144    48,153  
     International Operations    22,470    22,025    88,278    85,874  
     Technical Services    577    262    1,882    1,289  
         Total    61,743    59,291    256,792    258,881  
Operating revenue:  
   Helicopter activities:  
     North American Operations   $ 40,475   $ 35,587   $ 160,400   $ 150,572  
     North Sea Operations    48,871    42,795    180,705    189,518  
     International Operations    46,596    41,583    176,331    164,136  
     Technical Services    14,011    15,410    44,697    45,714  
     Less: Intercompany    (10,559 )  (9,809 )  (42,699 )  (37,156 )
         Total    139,394    125,566    519,434    512,784  
   Production Management Services    13,513    11,909    49,815    47,685  
   Corporate    3,882    3,203    12,759    11,993  
     Less: Intercompany    (5,177 )  (4,400 )  (18,359 )  (17,352 )
         Consolidated total   $ 151,612   $ 136,278   $ 563,649   $ 555,110  
Operating expenses:  
   Helicopter activities:  
     North American Operations   $ 33,281   $ 34,301   $ 132,577   $ 134,605  
     North Sea Operations    38,168    41,157    161,740    168,355  
     International Operations    41,394    35,945    154,473    138,082  
     Technical Services    12,731    14,944    42,121    42,735  
     Less: Intercompany    (10,559 )  (9,809 )  (42,699 )  (37,156 )
         Total    115,015    116,538    448,212    446,621  
   Production Management Services    12,941    11,441    47,302    44,737  
   Corporate    5,712    4,274    18,697    16,046  
     Less: Intercompany    (5,177 )  (4,400 )  (18,359 )  (17,352 )
         Consolidated total   $ 128,491   $ 127,853   $ 495,852   $ 490,052  
Operating income:  
   Helicopter activities:  
     North American Operations   $ 7,194   $ 1,286   $ 27,823   $ 15,967  
     North Sea Operations    10,703    1,638    18,965    21,163  
     International Operations    5,202    5,638    21,858    26,054  
     Technical Services    1,280    466    2,576    2,979  
     Curtailment gain allocated to Helicopter Activities    20,365    --    20,365    --  
         Total    44,744    9,028    91,587    66,163  
   Production Management Services    572    468    2,513    2,948  
   Corporate    (1,830 )  (1,071 )  (5,938 )  (4,053 )
   Curtailment gain allocated to Corporate    1,300    --    1,300    --  
   Gain (loss) on disposal of assets    1,355    2,427    3,943    3,734  
         Consolidated total   $ 46,141   $ 10,852   $ 93,405   $ 68,792  
Operating margin:  
   Helicopter activities:  
     North American Operations    17.8 %  3.6 %  17.3 %  10.6 %
     North Sea Operations    21.9 %  3.8 %  10.5 %  11.2 %
     International Operations    11.2 %  13.6 %  12.4 %  15.9 %
     Technical Services    9.1 %  3.0 %  5.8 %  6.5 %
         Total    32.1 %  7.2 %  17.6 %  12.9 %
   Production Management Services    4.2 %  3.9 %  5.0 %  6.2 %
         Consolidated total    30.4 %  8.0 %  16.6 %  12.4 %

Statements contained in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements contained in this press release include the possibility that the benefit from rate increases and cost savings in the North American Operations is not long lived, that the Company is unable to achieve the cost savings and the operational and managerial efficiencies anticipated in its North Sea Operations which would impede its competitiveness, that the Company is unable to reverse the decreasing trend in operating margins in certain international areas, that the Company is not able to take advantage of any future upturn in activity in North America or the North Sea and that absent such upturn the Company is unable to operate profitably at the current activity levels, and that the Company is unable and or unsuccessful in pursuing new growth opportunities. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s report on Form 10-K for the year ended March 31, 2003 and the Company’s report on Form 10-Q for the quarters ended June 30, September 30 and December 31, 2003. Copies of these may be obtained by contacting the Company or the SEC.

Investor Relations Contact:
H. Eddy Dupuis
Phone: (337) 233-1221
Fax: (337) 235-6678
investorrelations@olog.com

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Consolidated Statements of Income

Three Months Ended
March 31,
 Twelve Months Ended
March 31,
2004
 2003
 2004
 2003
(in thousands, except per share amounts)
GROSS REVENUE                    
Operating revenue   $ 151,612   $ 136,278   $ 563,649   $ 555,110  
Gain on disposal of assets    1,355    2,427    3,943    3,734  
     152,967    138,705    567,592    558,844  
OPERATING EXPENSES  
Direct cost    107,193    109,798    417,417    417,910  
Depreciation and amortization    10,466    9,804    39,543    37,664  
General and administrative    10,832    8,251    38,892    34,478  
     128,491    127,853    495,852    490,052  
Curtailment gain    21,665    --    21,665    --  
OPERATING INCOME    46,141    10,852    93,405    68,792  
Earnings from unconsolidated affiliates, net    4,159    5,326    11,039    12,054  
Interest income    361    402    1,689    1,523  
Interest expense    4,056    4,011    16,829    14,904  
Loss on extinguishment of debt    --    --    (6,205 )  --  
Other income (expense), net    (1,564 )  1,189    (7,810 )  (3,284 )
INCOME BEFORE PROVISION FOR INCOME  
   TAXES AND MINORITY INTEREST    45,041    13,758    75,289    64,181  
Provision for income taxes    11,728    4,127    20,803    19,254  
Minority interest    233    (484 )  (1,382 )  (1,797 )
NET INCOME   $ 33,546   $ 9,147   $ 53,104   $ 43,130  
Net income per common share:  
Basic   $ 1.48   $ 0.41   $ 2.36   $ 1.92  
Diluted   $ 1.47   $ 0.38   $ 2.29   $ 1.77  

OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets

March 31,
2004
 March 31,
2003
(in thousands)
ASSETS
           
Current Assets:  
    Cash and cash equivalents   $ 85,679   $ 56,800  
    Accounts receivable    121,146    119,012  
    Inventories    133,073    118,846  
    Prepaid expenses and other    10,874    8,443  
       Total current assets    350,772    303,101  
Investments in unconsolidated affiliates    38,929    27,928  
Property and equipment - at cost:  
    Land and buildings    26,594    16,671  
    Aircraft and equipment    797,783    703,111  
     824,377    719,782  
Less: Accumulated depreciation and amortization    (238,721 )  (193,555 )
     585,656    526,227  
Goodwill    26,829    26,872  
Other assets    42,717    21,903  
    $ 1,044,903   $ 906,031  

LIABILITIES AND STOCKHOLDERS' INVESTMENT
           
Current Liabilities:  
    Accounts payable   $ 27,439   $ 29,666  
    Accrued liabilities    65,257    64,181  
    Deferred taxes    1,802    33  
    Current maturities of long-term debt    4,417    96,684  
       Total current liabilities    98,915    190,564  
Long-term debt, less current maturities    251,117    136,134  
Other liabilities and deferred credits    147,326    120,035  
Deferred taxes    92,042    81,082  
Minority interest    9,385    16,555  
Stockholders' Investment:  
    Common Stock, $.01 par value, authorized 35,000,000  
       shares; outstanding 22,631,221 in 2004 and 22,510,921  
       in 2003 (exclusive of 1,281,050 treasury shares)    226    225  
    Additional paid-in capital    141,384    139,046  
    Retained earnings    352,602    299,498  
    Accumulated other comprehensive income (loss)    (48,094 )  (77,108 )
     446,118    361,661  
    $ 1,044,903   $ 906,031