----

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**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

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**FORM        10-Q**

| x | QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------------|

| For                  the quarterly period ended |   | June                  30, 2007 |
|-------------------------------------------------|--------|--------------------------------|
|                                            |   |                           |

|  ̈ | TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |         |     |         |
|-------------------------------------------------|--------|--------------|----------|--------------|
| For                  the transition period from |   |    |  to |    |

**AIR        METHODS CORPORATION**

| Delaware                                                                        |   | 84-0915893                                               |
|---------------------------------------------------------------------------------|--------|----------------------------------------------------------|
| (State                  or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.                  Employer Identification Number) |

| 7301                  South Peoria, Englewood, Colorado   |   | 80112                       |
|-----------------------------------------------------------|--------|-----------------------------|
| (Address                  of Principal Executive Offices) |   | (Zip                  Code) |

| Large                  accelerated Filer  ̈ |   | Accelerated                  Filer x |   | Non-accelerated                  Filer  ̈ |
|-------------------------------------------------|--------|--------------------------------------|--------|-----------------------------------------------|

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**TABLE        OF CONTENTS**

| PART                  I.  | FINANCIAL                  INFORMATION |                                                                                                                              |
|---------------------------|----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|                      |                                   |                                                                                                                              |   |
|                      | Item                  1.               | Consolidated                  Unaudited Financial Statements                                                                      |   |
|                      |                                   |                                                                                                                              |   |
|                      |                                   | Consolidated                  Balance Sheets – June 30, 2007 and December 31,                  2006                         | 1 |
|                      |                                   |                                                                                                                              |   |
|                      |                                   | Consolidated                  Statements of Operations for the three and six                  months ended June 30, 2007 and 2006 | 3 |
|                      |                                   |                                                                                                                              |   |
|                      |                                   | Consolidated                  Statements of Cash Flows for the six months ended                  June 30, 2007 and 2006           | 4 |
|                      |                                   |                                                                                                                              |   |
|                      |                                   | Notes                  to Unaudited Consolidated Financial                  Statements                                            | 6 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  2.               | Management’s                  Discussion and Analysis of Financial Condition and                  Results of Operations     |  10 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  3.               | Quantitative                  and Qualitative Disclosures about Market                  Risk                                      | 18 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  4.               | Controls                  and Procedures                                                                                          | 18 |
|                      |                                   |                                                                                                                              |   |
| PART                  II. | OTHER                  INFORMATION     |                                                                                                                              |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  1.               | Legal                  Proceedings                                                                                                |  19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  1A.              | Risk                  Factors                                                                                                     | 19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  2.               | Unregistered                  Sales of Equity Securities and Use of                  Proceeds                                     |  19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  3.               | Defaults                  upon Senior Securities                                                                                  | 19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  4.               | Submission                  of Matters to a Vote of Security                  Holders                                             | 19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  5.               | Other                  Information                                                                                                | 19 |
|                      |                                   |                                                                                                                              |   |
|                      | Item                  6.               | Exhibits                                                                                                                          |  19 |
|                      |                                   |                                                                                                                              |   |
| SIGNATURES                |                                   |                                                                                                                              | 20 |

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*Table            of Contents*

**PART        I: FINANCIAL INFORMATION**

**Item        1. Consolidated Financial Statements**

**AirMethods        Corporation and Subsidiaries**

**CONSOLIDATED        BALANCE SHEETS**

**(Amounts        in thousands, except share amounts)**

**(unaudited)**

|                                                                                                                                                                       |   | **June                  30,** |    |   | **December                  31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|-----------------------------------|--------|
|                                                                                                                                                                       |   | **2007**                      |    |   | **2006**                          |   |
| Assets                                                                                                                                                                     |   |                          |    |   |                              |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |
| Current                  assets:                                                                                                                                           |   |                          |    |   |                              |   |
| Cash                  and cash equivalents                                                                                                                                 |   | $                             | 4,182   |   |                              |   | 4,219 |   |
| Current                  installments of notes receivable                                                                                                                  |   |                          | 143     |   |                              |   | 161 |   |
| Receivables:                                                                                                                                                               |   |                          |    |   |                              |   |   |   |
| Trade,                  net                                                                                                                                                |   |                          | 102,127 |   |                              |   | 100,559 |   |
| Refundable                  income taxes                                                                                                                                   |   |                          | --      |   |                              |   | 4,898 |   |
| Other                                                                                                                                                                      |   |                          | 3,998   |   |                              |   | 2,298 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Total                  receivables                                                                                                                                         |   |                          | 106,125 |   |                              |   | 107,755 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Inventories                                                                                                                                                                |   |                          | 12,221  |   |                              |   | 10,819 |   |
| Work-in-process                  on medical interiors and products contracts                                                                                               |   |                          | 3,156   |   |                              |   | 2,026 |   |
| Assets                  held for sale                                                                                                                                      |   |                          | 19,425  |   |                              |   | 9,560 |   |
| Costs                  and estimated earnings in excess of billings on uncompleted                  contracts                                                              |   |                          | 2,619   |   |                              |   | 2,982 |   |
| Deferred                  income taxes (note 5)                                                                                                                            |   |                          | 1,916   |   |                              |   | 421 |   |
| Prepaid                  expenses and other                                                                                                                                |   |                          | 2,042   |   |                              |   | 1,918 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Total                  current assets                                                                                                                                      |   |                          | 151,829 |   |                              |   | 139,861 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Property                  and equipment:                                                                                                                                   |   |                          |    |   |                              |   |   |   |
| Land                                                                                                                                                                       |   |                          | 251     |   |                              |   | 251 |   |
| Flight                  and ground support equipment                                                                                                                       |   |                          | 160,463 |   |                              |   | 155,478 |   |
| Furniture                  and office equipment                                                                                                                            |   |                          | 13,454  |   |                              |   | 13,868 |   |
|                                                                                                                                                                       |   |                          | 174,168 |   |                              |   | 169,597 |   |
| Less                  accumulated depreciation and amortization                                                                                                            |   |                          | (77,148 | )      |                              |   | (74,022 | ) |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Net                  property and equipment                                                                                                                                |   |                          | 97,020  |   |                              |   | 95,575 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Goodwill                                                                                                                                                                   |   |                          | 6,485   |   |                              |   | 6,485 |   |
| Notes                  receivable, less current installments                                                                                                               |   |                          | 136     |   |                              |   | 198 |   |
| Other                  assets, net of accumulated amortization of $1,496 and $3,710 at                  June 30,                  2007 and December 31, 2006, respectively |   |                          | 10,521  |   |                              |   | 8,038 |   |
|                                                                                                                                                                       |   |                          |    |   |                              |   |   |   |
| Total                  assets                                                                                                                                              |   | $                             | 265,991 |   |                              |   | 250,157 |   |

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*Table            of Contents*

**Air        Methods Corporation and Subsidiaries**

**CONSOLIDATED        BALANCE SHEETS, Continued**

**(Amounts        in thousands, except share and per share amounts)**

**(unaudited)**

|                                                                                                                                                                                                                          |   | **June                  30,** |    |   | **December                  31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                          |   | **2007**                      |    |   | **2006**                          |   |
| Liabilities                  and Stockholders' Equity                                                                                                                                                                         |   |                          |    |   |                              |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |
| Current                  liabilities:                                                                                                                                                                                         |   |                          |    |   |                              |   |
| Notes                  payable                                                                                                                                                                                                |   | $                             | 19,100  |   |                              |   | 9,560 |   |
| Current                  installments of long-term debt                                                                                                                                                                       |   |                          | 9,712   |   |                              |   | 8,749 |   |
| Current                  installments of obligations under capital leases                                                                                                                                                     |   |                          | 921     |   |                              |   | 1,214 |   |
| Accounts                  payable                                                                                                                                                                                             |   |                          | 9,147   |   |                              |   | 8,532 |   |
| Deferred                  revenue                                                                                                                                                                                             |   |                          | 2,983   |   |                              |   | 2,329 |   |
| Billings                  in excess of costs and estimated earnings on uncompleted                  contracts                                                                                                                 |   |                          | 557     |   |                              |   | 329 |   |
| Accrued                  wages and compensated absences                                                                                                                                                                       |   |                          | 7,209   |   |                              |   | 6,894 |   |
| Due                  to third party payers                                                                                                                                                                                    |   |                          | 3,193   |   |                              |   | 2,709 |   |
| Other                  accrued liabilities                                                                                                                                                                                    |   |                          | 11,621  |   |                              |   | 7,513 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Total                  current liabilities                                                                                                                                                                                    |   |                          | 64,443  |   |                              |   | 47,829 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Long-term                  debt, less current installments                                                                                                                                                                    |   |                          | 48,145  |   |                              |   | 60,566 |   |
| Obligations                  under capital leases, less current installments                                                                                                                                                  |   |                          | 1,234   |   |                              |   | 1,780 |   |
| Deferred                  income taxes (note 5)                                                                                                                                                                               |   |                          | 20,143  |   |                              |   | 21,062 |   |
| Other                  liabilities                                                                                                                                                                                            |   |                          | 11,353  |   |                              |   | 11,606 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Total                  liabilities                                                                                                                                                                                            |   |                          | 145,318 |   |                              |   | 142,843 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Stockholders'                  equity (notes 2, 3, and 5):                                                                                                                                                                    |   |                          |    |   |                              |   |   |   |
| Preferred                  stock, $1 par value.  Authorized 5,000,000 shares, none                  issued                                                                                                          |   |                          | --      |   |                              |   | -- |   |
| Common                  stock, $.06 par value. Authorized 16,000,000 shares; issued 11,886,613                  and                  11,874,613 shares at June 30, 2007, and December 31, 2006,                  respectively |   |                          | 713     |   |                              |   | 712 |   |
| Additional                  paid-in capital                                                                                                                                                                                   |   |                          | 71,380  |   |                              |   | 70,106 |   |
| Retained                  earnings                                                                                                                                                                                            |   |                          | 48,580  |   |                              |   | 36,496 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Total                  stockholders' equity                                                                                                                                                                                   |   |                          | 120,673 |   |                              |   | 107,314 |   |
|                                                                                                                                                                                                                          |   |                          |    |   |                              |   |   |   |
| Total                  liabilities and stockholders’ equity                                                                                                                                                             |   | $                             | 265,991 |   |                              |   | 250,157 |   |

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*Table            of Contents*

**AirMethods        Corporation and Subsidiaries**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(Amounts        in thousands, except share and per share amounts)**

**(unaudited)**

|                                                                                  |   | **Three                  Months Ended****June                  30,** |       |   | **Six                  Months Ended** **June                  30,** |   |
|---------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|--------|--------------------------------------------------------------------------|--------|
|                                                                                  |   | **2007**                                                             |       |   | **2006**                                                                 |   |   | **2007** |   |   | **2006** |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |
| Revenue:                                                                              |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |
| Flight                  revenue, net (note 1)                                         |   | $                                                                    | 89,695     |   |                                                                     |   | 77,037 |   |   |   | 168,856 |   |   |   | 148,461 |   |
| Sales                  of medical interiors and products                              |   |                                                                 | 1,038      |   |                                                                     |   | 1,440 |   |   |   | 3,335 |   |   |   | 3,045 |   |
|                                                                                  |   |                                                                 | 90,733     |   |                                                                     |   | 78,477 |   |   |   | 172,191 |   |   |   | 151,506 |   |
| Operating                  expenses:                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Flight                  centers                                                       |   |                                                                 | 37,244     |   |                                                                     |   | 32,972 |   |   |   | 72,794 |   |   |   | 64,321 |   |
| Aircraft                  operations                                                  |   |                                                                 | 17,419     |   |                                                                     |   | 19,621 |   |   |   | 32,663 |   |   |   | 36,831 |   |
| Aircraft                  rental                                                      |   |                                                                 | 6,019      |   |                                                                     |   | 5,365 |   |   |   | 11,826 |   |   |   | 10,369 |   |
| Cost                  of medical interiors and products sold                          |   |                                                                 | 386        |   |                                                                     |   | 551 |   |   |   | 2,126 |   |   |   | 1,456 |   |
| Depreciation                  and amortization                                        |   |                                                                 | 3,479      |   |                                                                     |   | 3,194 |   |   |   | 6,890 |   |   |   | 6,365 |   |
| Gain                  on disposition of assets, net                                   |   |                                                                 | (497       | )      |                                                                     |   | (647 | ) |   |   | (345 | ) |   |   | (562 | ) |
| General                  and administrative                                           |   |                                                                 | 12,568     |   |                                                                     |   | 10,021 |   |   |   | 24,719 |   |   |   | 19,848 |   |
|                                                                                  |   |                                                                 | 76,618     |   |                                                                     |   | 71,077 |   |   |   | 150,673 |   |   |   | 138,628 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  income                                                     |   |                                                                 | 14,115     |   |                                                                     |   | 7,400 |   |   |   | 21,518 |   |   |   | 12,878 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                              |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                                     |   |                                                                 | (1,318     | )      |                                                                     |   | (1,470 | ) |   |   | (2,740 | ) |   |   | (2,826 | ) |
| Other,                  net                                                           |   |                                                                 | 491        |   |                                                                     |   | 394 |   |   |   | 946 |   |   |   | 740 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                  before income taxes                                           |   |                                                                 | 13,288     |   |                                                                     |   | 6,324 |   |   |   | 19,724 |   |   |   | 10,792 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax expense                                                   |   |                                                                 | (5,463     | )      |                                                                     |   | (2,511 | ) |   |   | (8,201 | ) |   |   | (4,399 | ) |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                           |   | $                                                                    | 7,825      |   |                                                                     |   | 3,813 |   |   |   | 11,523 |   |   |   | 6,393 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  income per common share (note 4)                               |   | $                                                                    | .66        |   |                                                                     |   | .32 |   |   |   | .97 |   |   |   | .55 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                  income per common share (note 4)                             |   | $                                                                    | .63        |   |                                                                     |   | .31 |   |   |   | .93 |   |   |   | .52 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding – basic   |   |                                                                 | 11,886,613 |   |                                                                     |   | 11,760,986 |   |   |   | 11,881,751 |   |   |   | 11,698,504 |   |
|                                                                                  |   |                                                                 |       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of common shares outstanding – diluted |   |                                                                 | 12,431,098 |   |                                                                     |   | 12,318,161 |   |   |   | 12,382,830 |   |   |   | 12,300,428 |   |

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*Table            of Contents*

**AirMethods        Corporation and Subsidiaries**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(Amounts        in thousands)**

**(unaudited)**

|                                                                                                                       |   | **Six                  Months Ended June 30,** |    |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                                                                       |   | **2007**                                       |    |   | **2006** |   |
|                                                                                                                       |   |                                           |    |   |   |   |
| Cash                  flows from operating activities:                                                                     |   |                                           |    |   |   |   |
| Net                  income                                                                                                |   | $                                              | 11,523  |   |   |   | 6,393 |   |
| Adjustments                  to reconcile net income to net cash provided (used) by operating                  activities: |   |                                           |    |   |   |   |   |   |
| Depreciation                  and amortization expense                                                                     |   |                                           | 6,890   |   |   |   | 6,365 |   |
| Deferred                  income tax benefit                                                                               |   |                                           | (1,853  | ) |   |   | (1,748 | ) |
| Stock-based                  compensation                                                                                  |   |                                           | 1,104   |   |   |   | 186 |   |
| Tax                  benefit from exercise of stock options                                                                |   |                                           | (68     | ) |   |   | (833 | ) |
| Gain                  on retirement and sale of equipment, net                                                             |   |                                           | (345    | ) |   |   | (562 | ) |
| Changes                  in assets and liabilities:                                                                        |   |                                           |    |   |   |   |   |   |
| Decrease                  (increase) in prepaid expenses and other current assets                                          |   |                                           | (124    | ) |   |   | 272 |   |
| Decrease                  (increase) in receivables                                                                        |   |                                           | 1,698   |   |   |   | (12,938 | ) |
| Increase                  in parts inventories                                                                             |   |                                           | (1,402  | ) |   |   | (622 | ) |
| Increase                  in work-in-process on medical interiors and costs in excess of                  billings         |   |                                           | (767    | ) |   |   | (1,319 | ) |
| Increase                  in accounts payable, other accrued liabilities, and other                  liabilities           |   |                                           | 4,992   |   |   |   | 1,910 |   |
| Increase                  (decrease) in deferred revenue and billings in excess of                  costs                  |   |                                           | 882     |   |   |   | (1,465 | ) |
| Net                  cash provided (used) by operating activities                                                          |   |                                           | 22,530  |   |   |   | (4,361 | ) |
|                                                                                                                       |   |                                           |    |   |   |   |   |   |
| Cash                  flows from investing activities:                                                                     |   |                                           |    |   |   |   |   |   |
| Acquisition                  of property and equipment                                                                     |   |                                           | (9,238  | ) |   |   | (6,663 | ) |
| Proceeds                  from disposition and sale of equipment and assets held for                  sale                 |   |                                           | 1,529   |   |   |   | 1,803 |   |
| Decrease                  (increase) in notes receivable and other assets                                                  |   |                                           | (2,686  | ) |   |   | 97 |   |
| Net                  cash used by investing activities                                                                     |   |                                           | (10,395 | ) |   |   | (4,763 | ) |

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*Table            of Contents*

**Air        Methods Corporation and Subsidiaries**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS, Continued**

**(Amounts        in thousands)**

**(unaudited)**

|                                                              |   | **Six                  Months Ended June 30,** |    |
|-------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                              |   | **2007**                                       |    |   | **2006** |   |
|                                                              |   |                                           |    |   |   |   |
| Cash                  flows from financing activities:            |   |                                           |    |   |   |   |
| Proceeds                  from issuance of common stock, net      |   | $                                              | 103     |   |   |   | 1,176 |   |
| Tax                  benefit from exercise of stock options       |   |                                           | 68      |   |   |   | 833 |   |
| Net                  borrowings (payments) under line of credit   |   |                                           | (8,099  | ) |   |   | 11,939 |   |
| Proceeds                  from issuance of long-term debt         |   |                                           | 1,573   |   |   |   | 2,749 |   |
| Payments                  for debt issue costs                    |   |                                           | (46     | ) |   |   | (80 | ) |
| Payments                  of long-term debt                       |   |                                           | (4,932  | ) |   |   | (7,586 | ) |
| Payments                  of capital lease obligations            |   |                                           | (839    | ) |   |   | (347 | ) |
| Net                  cash provided (used) by financing activities |   |                                           | (12,172 | ) |   |   | 8,684 |   |
|                                                              |   |                                           |    |   |   |   |   |   |
| Decrease                  in cash and cash equivalents            |   |                                           | (37     | ) |   |   | (440 | ) |
|                                                              |   |                                           |    |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of period |   |                                           | 4,219   |   |   |   | 3,218 |   |
|                                                              |   |                                           |    |   |   |   |   |   |
| Cash                  and cash equivalents at end of period       |   | $                                              | 4,182   |   |   |   | 2,778 |   |
|                                                              |   |                                           |    |   |   |   |   |   |
| Interest                  paid in cash during the year            |   | $                                              | 2,775   |   |   |   | 2,506 |   |
|                                                              |   |                                           |    |   |   |   |   |   |
| Income                  taxes paid in cash during the year        |   | $                                              | 4,593   |   |   |   | 2,927 |   |

*Accounting for Uncertainty in Income Taxes,*

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*Table            of Contents*

**Air        Methods Corporation and Subsidiaries**

**Notes        to Unaudited Consolidated Financial Statements**

| **(1)** | **Basis                  of Presentation** |
|---------|--------------------------------------------|

| **(2)** | **Stockholders’                  Equity** |
|---------|-------------------------------------------------|

|                                                             |   | Shares      |       |   |   |   |
|------------------------------------------------------------------|--------|-------------|------------|--------|--------|--------|
|                                                             |   | Outstanding |       |   | Amount |   |
|                                                             |   |        |       |   |   |   |
| Balances                  at January 1, 2007                     |   |        | 11,874,613 |   |   | $      | 107,314 |   |
|                                                             |   |        |       |   |   |   |   |   |
| Adoption                  of FIN 48                              |   |        | --         |   |   |   | 561 |   |
| Issuance                  of common shares for options exercised |   |        | 12,000     |   |   |   | 103 |   |
| Tax                  benefit from exercise of stock options      |   |        | --         |   |   |   | 68 |   |
| Stock-based                  compensation                        |   |        | --         |   |   |   | 1,104 |   |
| Net                  income                                      |   |        | --         |   |   |   | 11,523 |   |
|                                                             |   |        |       |   |   |   |   |   |
| Balances                  at June 30, 2007                       |   |        | 11,886,613 |   |   | $      | 120,673 |   |

| **(3)** | **Stock-based                  Compensation** |
|---------|-----------------------------------------------|

----

*Table            of Contents*

|   | **Air                  Methods Corporation and                  Subsidiaries** |
|--------|--------------------------------------------------------------------------------|

|   | **Notes                  to Consolidated Financial Statements,                  continued** |
|--------|---------------------------------------------------------------------------------------------|

| **(4)** | **Income                  per Share** |
|---------|---------------------------------------|

|                                                                                  |   | 2007   |       |   | 2006   |   |
|---------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| **For                  quarter ended June 30:**                                       |   |   |       |   |   |   |
| Weighted                  average number of common shares outstanding – basic   |   |   | 11,886,613 |   |   |   | 11,760,986 |   |
| Dilutive                  effect of:                                                  |   |   |       |   |   |   |   |   |
| Common                  stock options                                                 |   |   | 460,817    |   |   |   | 477,800 |   |
| Common                  stock warrants                                                |   |   | 83,668     |   |   |   | 79,375 |   |
| Weighted                  average number of common shares outstanding – diluted |   |   | 12,431,098 |   |   |   | 12,318,161 |   |

| **For                  six months ended June 30:**                                    |   |   |       |   |   |   |
|---------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Weighted                  average number of common shares outstanding – basic   |   |   | 11,881,751 |   |   |   | 11,698,504 |   |
| Dilutive                  effect of:                                                  |   |   |       |   |   |   |   |   |
| Common                  stock options                                                 |   |   | 419,180    |   |   |   | 516,198 |   |
| Common                  stock warrants                                                |   |   | 81,899     |   |   |   | 85,726 |   |
| Weighted                  average number of common shares outstanding – diluted |   |   | 12,382,830 |   |   |   | 12,300,428 |   |

| **(5)** | **Income                  Taxes** |
|---------|-----------------------------------|

*Accounting for Uncertainty in Income Taxes*

----

*Table            of Contents*

**Air        Methods Corporation and Subsidiaries**

**Notes        to Unaudited Consolidated Financial Statements, continued**

| **(6)** | **New                  Accounting                  Pronouncements** |
|---------|---------------------------------------------------------------------|

*The Fair Value Option for Financial Assets and        Financial Liabilities *

| ** (7)** | **Business                  Segment Information** |
|---------------|---------------------------------------------------|

|   | · | Community-Based                  Services (CBS) - provides air medical transportation services to                  the                  general population as an independent service in eighteen states.                  Services                  include aircraft operation and maintenance, medical care, dispatch                  and                  communications, and medical billing and                  collection. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hospital-Based                  Services (HBS) - provides air medical transportation services to                  hospitals                  in 26 states under exclusive operating agreements. Services include                  aircraft operation and maintenance. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Products                  Division - designs, manufactures, and installs aircraft medical                  interiors                  and other aerospace and medical transport products for domestic                  and                  international customers. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  **For                  quarter ended June 30:**                          |   | CBS    |    |   | HBS    |   |    | ProductsDivision |   |   | CorporateActivities |   |    | IntersegmentEliminations |   |   | Consolidated |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|------------------|--------|--------|---------------------|--------|---------|--------------------------|--------|--------|--------------|--------|
| **2007**                                                                       |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |   |   |         |   |
| External                  revenue                                              |   | $      | 61,846  |   |   |   | 27,860  |             |   |   | 1,027               |   |    |                     | --     |   |         |   | -- |   |   |   | 90,733 |   |
| Intersegment                  revenue                                          |   |   | 36      |   |   |   | --      |             |   |   | 5,385               |   |    |                     | --     |   |         |   | (5,421 | ) |   |   | -- |   |
| Total                  revenue                                                 |   |   | 61,882  |   |   |   | 27,860  |             |   |   | 6,412               |   |    |                     | --     |   |         |   | (5,421 | ) |   |   | 90,733 |   |
| Operating                  expenses, excluding depreciation & amortization |   |   | (45,505 | )      |   |   | (24,569 | )                |   |   | (5,249              | )      |    |                     | (2,587 | )      |         |   | 4,771 |   |   |   | (73,139 | ) |
| Depreciation                  & amortization                               |   |   | (1,846  | )      |   |   | (1,389  | )                |   |   | (148                | )      |    |                     | (96    | )      |         |   | -- |   |   |   | (3,479 | ) |
| Interest                  expense                                              |   |   | (657    | )      |   |   | (610    | )                |   |   | --                  |   |    |                     | (51    | )      |         |   | -- |   |   |   | (1,318 | ) |
| Other                  income, net                                             |   |   | 473     |   |   |   | --      |             |   |   | --                  |   |    |                     | 18     |   |         |   | -- |   |   |   | 491 |   |
| Income                  tax expense                                            |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (5,463 | )      |         |   | -- |   |   |   | (5,463 | ) |
| Segment                  net income (loss)                                     |   | $      | 14,347  |   |   |   | 1,292   |             |   |   | 1,015               |   |    |                     | (8,179 | )      |         |   | (650 | ) |   |   | 7,825 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |   |   |         |   |   |   |   |   |   |   |
| Total                  assets                                                  |   | $      | 142,270 |   |   | N/A    |    |             | N/A    |   |                |   | 125,885 |                     |   |   | (2,164       | )      |   |   | 265,991 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |   |   |         |   |   |   |   |   |   |   |
| **2006**                                                                       |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |   |   |         |   |   |   |   |   |   |   |
| External                  revenue                                              |   | $      | 49,632  |   |   |   | 27,511  |             |   |   | 1,334               |   |    |                     | --     |   |         |   | -- |   |   |   | 78,477 |   |
| Intersegment                  revenue                                          |   |   | --      |   |   |   | --      |             |   |   | 2,908               |   |    |                     | --     |   |         |   | (2,908 | ) |   |   | -- |   |
| Total                  revenue                                                 |   |   | 49,632  |   |   |   | 27,511  |             |   |   | 4,242               |   |    |                     | --     |   |         |   | (2,908 | ) |   |   | 78,477 |   |
| Operating                  expenses, excluding depreciation & amortization |   |   | (40,212 | )      |   |   | (25,431 | )                |   |   | (2,990              | )      |    |                     | (1,564 | )      |         |   | 2,314 |   |   |   | (67,883 | ) |
| Depreciation                  & amortization                               |   |   | (1,596  | )      |   |   | (1,406  | )                |   |   | (108                | )      |    |                     | (84    | )      |         |   | -- |   |   |   | (3,194 | ) |
| Interest                  expense                                              |   |   | (771    | )      |   |   | (677    | )                |   |   | --                  |   |    |                     | (22    | )      |         |   | -- |   |   |   | (1,470 | ) |
| Other                  income, net                                             |   |   | 375     |   |   |   | --      |             |   |   | --                  |   |    |                     | 19     |   |         |   | -- |   |   |   | 394 |   |
| Income                  tax expense                                            |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (2,511 | )      |         |   | -- |   |   |   | (2,511 | ) |
| Segment                  net income (loss)                                     |   | $      | 7,428   |   |   |   | (3      | )                |   |   | 1,144               |   |    |                     | (4,162 | )      |         |   | (594 | ) |   |   | 3,813 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |   |   |         |   |   |   |   |   |   |   |
| Total                  assets                                                  |   | $      | 99,506  |   |   | N/A    |    |             | N/A    |   |                |   | 143,987 |                     |   |   | (2,164       | )      |   |   | 241,329 |   |

----

*Table            of Contents*

**Air        Methods Corporation and Subsidiaries**

**Notes        to Unaudited Consolidated Financial Statements, continued**

| **(7)** | **Business                  Segment Information,                  continued** |
|---------|-------------------------------------------------------------------------------|

|  **For                  six months ended June 30:**                       |   | CBS    |    |   | HBS    |   |    | ProductsDivision |   |   | CorporateActivities |   |    | IntersegmentEliminations |    |   | Consolidated |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|------------------|--------|--------|---------------------|--------|---------|--------------------------|---------|--------|--------------|--------|
| **2007**                                                                       |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |
| External                  revenue                                              |   | $      | 115,245 |   |   |   | 53,632  |             |   |   | 3,314               |   |    |                     | --      |   |         |   | -- |   |   |   | 172,191 |   |
| Intersegment                  revenue                                          |   |   | 36      |   |   |   | 473     |             |   |   | 8,979               |   |    |                     | --      |   |         |   | (9,488 | ) |   |   | -- |   |
| Total                  revenue                                                 |   |   | 115,281 |   |   |   | 54,105  |             |   |   | 12,293              |   |    |                     | --      |   |         |   | (9,488 | ) |   |   | 172,191 |   |
| Operating                  expenses, excluding depreciation & amortization |   |   | (88,900 | )      |   |   | (46,970 | )                |   |   | (9,758              | )      |    |                     | (5,997  | )      |         |   | 7,842 |   |   |   | (143,783 | ) |
| Depreciation                  & amortization                               |   |   | (3,660  | )      |   |   | (2,747  | )                |   |   | (296                | )      |    |                     | (187    | )      |         |   | -- |   |   |   | (6,890 | ) |
| Interest                  expense                                              |   |   | (1,366  | )      |   |   | (1,259  | )                |   |   | --                  |   |    |                     | (115    | )      |         |   | -- |   |   |   | (2,740 | ) |
| Other                  income, net                                             |   |   | 910     |   |   |   | --      |             |   |   | --                  |   |    |                     | 36      |   |         |   | -- |   |   |   | 946 |   |
| Income                  tax expense                                            |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (8,201  | )      |         |   | -- |   |   |   | (8,201 | ) |
| Segment                  net income (loss)                                     |   | $      | 22,265  |   |   |   | 3,129   |             |   |   | 2,239               |   |    |                     | (14,464 | )      |         |   | (1,646 | ) |   |   | 11,523 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                  assets                                                  |   | $      | 142,270 |   |   | N/A    |    |             | N/A    |   |                |   | 125,885 |                     |    |   | (2,164       | )      |   |   | 265,991 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| **2006**                                                                       |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| External                  revenue                                              |   | $      | 95,138  |   |   |   | 53,465  |             |   |   | 2,903               |   |    |                     | --      |   |         |   | -- |   |   |   | 151,506 |   |
| Intersegment                  revenue                                          |   |   | --      |   |   |   | --      |             |   |   | 6,152               |   |    |                     | --      |   |         |   | (6,152 | ) |   |   | -- |   |
| Total                  revenue                                                 |   |   | 95,138  |   |   |   | 53,465  |             |   |   | 9,055               |   |    |                     | --      |   |         |   | (6,152 | ) |   |   | 151,506 |   |
| Operating                  expenses, excluding depreciation & amortization |   |   | (76,835 | )      |   |   | (49,603 | )                |   |   | (6,483              | )      |    |                     | (4,108  | )      |         |   | 4,766 |   |   |   | (132,263 | ) |
| Depreciation                  & amortization                               |   |   | (3,248  | )      |   |   | (2,744  | )                |   |   | (215                | )      |    |                     | (158    | )      |         |   | -- |   |   |   | (6,365 | ) |
| Interest                  expense                                              |   |   | (1,499  | )      |   |   | (1,276  | )                |   |   | --                  |   |    |                     | (51     | )      |         |   | -- |   |   |   | (2,826 | ) |
| Other                  income, net                                             |   |   | 668     |   |   |   | --      |             |   |   | --                  |   |    |                     | 72      |   |         |   | -- |   |   |   | 740 |   |
| Income                  tax expense                                            |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (4,399  | )      |         |   | -- |   |   |   | (4,399 | ) |
| Segment                  net income (loss)                                     |   | $      | 14,224  |   |   |   | (158    | )                |   |   | 2,357               |   |    |                     | (8,644  | )      |         |   | (1,386 | ) |   |   | 6,393 |   |
|                                                                           |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                  assets                                                  |   | $      | 99,506  |   |   | N/A    |    |             | N/A    |   |                |   | 143,987 |                     |    |   | (2,164       | )      |   |   | 241,329 |   |

| **(8)** | **Subsequent                  Event** |
|---------|---------------------------------------|

----

*Table            of Contents*

| **ITEM                  2.** | **Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations** |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

**Overview**

| · | Community-Based                  Services (CBS) - provides air medical transportation services to                  the                  general population as an independent service. Revenue consists                  of flight                  fees billed directly to patients, their insurers, or governmental                  agencies, and cash flow is dependent upon collection from these                  individuals or entities. In the first                  six                  months of 2007 the CBS Division generated 67% of our total revenue,                  compared to 63% in the first six months of                  2006. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Hospital-Based                  Services (HBS) - provides air medical transportation services to                  hospitals                  throughout the U.S. under exclusive operating agreements. Revenue                  consists                  of fixed monthly fees (approximately 65% of total contract revenue)                  and                  hourly flight fees (approximately 35% of total contract revenue)                  billed to                  hospital customers. In the six months ended June 30, 2007, the                  HBS                  Division generated 31% of our total revenue, compared to 35% in                  the six                  months ended June 30, 2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Products                  Division - designs, manufactures, and installs aircraft medical                  interiors                  and other aerospace and medical transport products for domestic                  and                  international customers. The Products Division generated 2% of                  our total                  revenue in the six months ended June 30, 2007 and                  2006. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Flight                  volume.** Fluctuations in flight volume have a greater impact on                  CBS operations than HBS operations because almost all of CBS revenue                  is                  derived from flight fees, as compared to approximately 35% of HBS                  revenue.                  By contrast, 81% of our costs primarily associated with flight                  operations                  (including salaries, aircraft ownership costs, hull insurance,                  and general                  and administrative expenses) incurred during the first six months                  of 2007                  are mainly fixed in nature. While flight volume is affected by                  many                  factors, including competition and the effectiveness of marketing                  and                  business development initiatives, the greatest single variable                  has                  historically been weather conditions. Adverse weather conditions—such as                  fog, high winds, or heavy precipitation—hamper our ability to operate our                  aircraft safely and, therefore, result in reduced flight volume.                  Total                  patient transports for CBS operations were approximately 9,800                  and 18,100                  for the quarter and six months ended June 30, 2007, respectively,                  compared                  to approximately 8,900 and 16,500 for the quarter and six months                  ended                  June 30, 2006, respectively. Patient transports for CBS bases open                  longer                  than one year (Same-Base Transports) were approximately 8,300 and                  15,600                  in the quarter and six months ended June 30, 2007, respectively,                  compared                  to approximately 8,600 and 16,100 in the quarter and six months                  ended June                  30, 2006, respectively. Cancellations due to unfavorable weather                  conditions for CBS bases open longer than one year were 85, or                  5.5%, and                  130, or 3.8%, higher in the quarter and six months ended June 30,                  2007,                  respectively, compared to 2006. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

| · | **Reimbursement                  per transport.** We respond to calls for air medical transports                  without pre-screening the creditworthiness of the patient and are                  subject                  to collection risk on services provided to insured and uninsured                  patients.                  Medicare and Medicaid also receive contractual discounts from our                  standard                  charges for flight services. Flight revenue is recorded net of                  provisions                  for contractual discounts and estimated uncompensated care. Both                  provisions are estimated during the period the related services                  are                  performed based on historical collection experience and any known                  trends                  or changes in reimbursement rate schedules and payer mix. The provisions                  are adjusted as required based on actual collections in subsequent                  periods. Net reimbursement per transport for CBS and HBS at-risk                  operations is primarily a function of price, payer mix, and timely                  and                  effective collection efforts. Both the pace of collections and                  the                  ultimate collection rate are affected by the overall health of                  the U.S.                  economy, which impacts the number of indigent patients and funding                  for                  state-run programs, such as Medicaid. Medicaid reimbursement rates                  in many                  jurisdictions have remained well below the cost of providing air                  medical                  transportation. In addition, the collection rate is impacted by                  changes in                  the cost of healthcare and health insurance; as the cost of healthcare                  increases, health insurance coverage provided by employers may                  be reduced                  or eliminated entirely, resulting in an increase in the uninsured                  population. We have increased average prices for our CBS operations                  a                  total of 13% since the first quarter of 2006, contributing to an                  increase                  of 11.0% in net reimbursement per transport in the first six months                  of                  2007 compared to the first six months of 2006. Provisions for contractual                  discounts and estimated uncompensated care for CBS operations are                  as                  follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | For                  quarters endedJune                  30, |   |   | For                  six months endedJune                  30, |   |
|------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                                 |   | 2007                                                         |   |   | 2006                                                           |   |   | 2007 |   |   | 2006 |   |
| Gross                  billings                      |   |                                                         | 100    | %      |                                                           |   | 100 | % |   |   | 100 | % |   |   | 100 | % |
| Provision                  for contractual discounts |   |                                                         | 29     | %      |                                                           |   | 27 | % |   |   | 31 | % |   |   | 29 | % |
| Provision                  for uncompensated care    |   |                                                         | 22     | %      |                                                           |   | 25 | % |   |   | 20 | % |   |   | 22 | % |

| · | **Aircraft                  maintenance.** Both CBS and HBS operations are directly affected by                  fluctuations in aircraft maintenance costs. Proper operation of                  the                  aircraft by flight crews and standardized maintenance practices                  can help                  to contain maintenance costs. Increases in spare parts prices from                  original equipment manufacturers tend to be higher for aircraft                  which are                  no longer in production. Five models of aircraft within our fleet,                  representing 33% of the rotor wing fleet, are no longer in production                  and                  are, therefore, susceptible to spare parts price increases which                  outpace                  general inflationary trends. In addition, on-condition components                  are more                  likely to require replacement with age. Since January 1, 2006,                  we have                  taken delivery of 25 new aircraft and have the option to purchase                  nine                  additional aircraft through the end of 2007. We plan to replace                  discontinued models and other older aircraft with the new aircraft                  expected to be delivered under these options, as well as to provide                  capacity for base expansion. Replacement models of aircraft typically                  have                  higher ownership costs than the models targeted for replacement                  but lower                  maintenance costs. Total maintenance expense for CBS and HBS operations                  decreased 14.5% and 15.7% for the quarter and six months ended                  June 30,                  2007, respectively, compared to 2006, while total flight volume                  for CBS                  and HBS operations increased 1.7% in the second quarter of 2007                  and                  remained relatively unchanged during the six-month period, compared                  to                  2006. During 2007 we incurred costs on fewer significant maintenance                  events related to older models of aircraft than during 2006. Maintenance                  cost per hour on newer aircraft has remained relatively constant                  on an                  annual basis. Maintenance cost per hour on older models of aircraft,                  however, may vary more widely on a quarterly basis depending on                  component                  overhaul and replacement and aircraft refurbishment                  cycles. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Aircraft                  availability.** The recent high rate of growth in the air medical                  transportation and other helicopter services industries has generated                  strong demand for new models of helicopters. Quality used aircraft                  are                  also in short supply worldwide. We have endeavored to mitigate                  the                  shortage of suitable aircraft primarily through long-term arrangements                  with a single aircraft manufacturer which provides us options to                  purchase                  up to ten aircraft each year for the next several years. We also                  have a                  purchase commitment with another manufacturer for fifteen aircraft,                  with                  deliveries scheduled to begin in 2008, as well as options for an                  additional fifteen aircraft in future                  years. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

| · | **Competitive                  pressures from low-cost providers.** We are recognized within the                  industry for our standard of service and our use of cabin-class                  aircraft.                  Many of our regional competitors utilize aircraft with lower ownership                  and                  operating costs and do not require a similar level of experience                  for                  aviation and medical personnel. Reimbursement rates established                  by                  Medicare, Medicaid, and most insurance providers are not contingent                  upon                  the type of aircraft used or the experience of personnel. However,                  we                  believe that higher quality standards help to differentiate our                  service                  from competitors and, therefore, lead to higher utilization. Deploying                  multiple aircraft in a market may also serve as a barrier to entry                  for                  lower cost providers. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Employee                  recruitment and relations.** The ability to deliver quality                  services is partially dependent upon our ability to hire and retain                  employees who have advanced aviation, nursing, and other technical                  skills.                  In addition, hospital contracts typically contain minimum certification                  requirements for pilots and mechanics. Employees who meet these                  standards                  are in great demand and are likely to remain a limited resource                  in the                  foreseeable future. In September 2003, our pilots voted to be                  represented by a collective bargaining unit, and we signed a collective                  bargaining agreement on March 31, 2006. The agreement is effective                  January                  1, 2006, through April 30, 2009. Other employee groups may also                  elect to                  be represented by unions in the                  future. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RESULTS        OF OPERATIONS**

***Flight        Operations – Community-based Services and Hospital-based        Services***

**Net        flight revenue**

| · | CBS                  – Net flight revenue increased $12,218,000, or 24.6%, to $61,835,000                  for                  the second quarter of 2007 and $20,111,000, or 21.1%, to $115,225,000                  for                  the six months ended June 30, 2007, for the following                  reasons: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Average                  price increases totaling approximately 13% for all CBS operations                  since                  the first quarter of 2006, including 7% effective January 1, 2007.                  Net                  reimbursement per transport increased approximately 13.9% and 11.0%                  in the                  quarter and six months ended June 30, 2007, respectively, compared                  to                  2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental                  net revenue of $7,218,000 and $13,730,000 for the quarter and six                  months                  ended June 30, 2007, respectively, generated from the addition                  of nineteen                  new CBS bases either during or subsequent to the first six months                  of                  2006. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Closure                  of one base during the fourth quarter of 2006 and the conversion                  of                  another base to HBS operations during the first quarter of 2007,                  resulting                  in decreases in net revenue of approximately $1,028,000 and $1,113,000                  for                  the quarter and six months ended June 30,                  2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases                  of 2.9% and 3.2% in Same-Base Transports for the quarter and six                  months                  ended June 30, 2007, respectively, compared to the prior year.                  Cancellations due to unfavorable weather conditions for CBS bases                  open                  longer than one year were 85, or 5.5%, and 130, or 3.8%, higher                  in the                  quarter and six months ended June 30, 2007, respectively, compared                  to                  2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | HBS                  – Net flight revenue increased $440,000, or 1.6%, to $27,860,000                  for the                  second quarter of 2007 and $284,000, or 0.5%, to $53,631,000 for                  the six                  months ended June 30, 2007, for the following                  reasons: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental                  net revenue of $1,136,000 and $2,070,000, for the quarter and six                  months                  ended June 30, 2007, respectively, from the addition of two new                  contracts,                  the expansion of two contracts, and the conversion of one CBS location                  to                  HBS operations during or subsequent to the second quarter of                  2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cessation                  of service under two contracts and the conversion of one contract                  to CBS                  operations in 2006, resulting in decreases in net revenue of approximately                  $1,279,000 and $2,532,000 for the quarter and six months ended                  June 30,                  2007, respectively. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Annual                  price increases in the majority of contracts based on changes in                  the                  Consumer Price Index or spare parts prices from aircraft manufacturers                  and                  the renewal of contracts at higher                  rates. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decrease                  of 2.6% in flight volume for the six months ended June 30, 2007,                  compared                  to 2006, for all contracts excluding the new contracts, expansions,                  and                  closed contracts discussed above. Flight volume was relatively                  unchanged                  in the second quarter of 2007 compared to                  2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

**Flight        center costs**

| · | CBS                  – Flight center costs increased $3,139,000, or 14.6%, to $24,703,000                  for                  the second quarter of 2007 and $6,545,000, or 15.7%, to $48,124,000                  for                  the six months ended June 30, 2007, for the following                  reasons: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                  of approximately $3,349,000 and $6,351,000 for the quarter and                  six months                  ended June 30, 2007, respectively, for the addition of personnel                  to staff                  new base locations described above. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases                  of approximately $395,000 and $860,000 for the quarter and six                  months                  ended June 30, 2007, respectively, due to the closure of base locations                  described above. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                  in salaries for merit pay raises. |
|--------|--------|--------------------------------------------------------------|

| · | HBS                  - Flight center costs increased $1,133,000, or 9.9%, to $12,541,000                  for                  the second quarter of 2007 and $1,928,000, or 8.5%, to $24,670,000                  for the                  six months ended June 30, 2007, primarily due to the                  following: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                  of approximately $500,000 and $790,000 for the quarter and six                  months                  ended June 30, 2007, respectively, for the addition of personnel                  to staff                  new base locations described above. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases                  of approximately $349,000 and $774,000 for the quarter and six                  months                  ended June 30, 2007, respectively, due to the base closures described                  above. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                  in salaries for merit pay raises. |
|--------|--------|--------------------------------------------------------------|

**Aircraft        operating expenses**

| · | Decreases                  of $2,177,000 and $4,493,000 in the cost of aircraft maintenance                  for the                  quarter and six months ended June 30, 2007. Annual price increases                  in the                  cost of spare parts and overhauls were offset in part during the                  periods                  by our ability to use exchange components rather than new parts                  in certain                  instances and by increased life-cycle intervals approved on certain                  life-limited components. Since the first quarter of 2006, we have                  added                  forty new helicopters to our fleet and eliminated twelve aircraft                  which                  were older models. Maintenance cost per hour on newer aircraft                  has                  remained relatively constant on an annual basis. Maintenance cost                  per hour                  on older models of aircraft, however, may vary more widely on a                  quarterly                  basis depending on component overhaul and replacement and aircraft                  refurbishment cycles. During 2007 we incurred costs on fewer significant                  maintenance events related to older models of aircraft than during                  2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decreases                  in flight volume for bases open longer than one year for both CBS                  and HBS                  as described above. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increases                  of approximately 10.2% and 15.4% in the cost of aircraft fuel per                  hour                  flown for the quarter and six months ended June 30, 2007,                  respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decrease                  in hull insurance rates effective July                  2006. |
|--------|-----------------------------------------------------------------------------------------|

**Aircraft        rental expense**

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*Table            of Contents*

***Products        Division***

**Sales        of medical interiors and products**

| · | $258,000                  and $551,000 - multi-mission                  interiors |
|--------|-----------------------------------------------------------------------------------|

| · | $503,000                  and $1,081,000 - modular medical                  interiors |
|--------|---------------------------------------------------------------------------------------|

| · | $277,000                  and $1,703,000 - other aerospace and medical transport                  products |
|--------|------------------------------------------------------------------------------------------------------------|

| · | $555,000                  and $1,561,000 - multi-mission                  interiors |
|--------|-------------------------------------------------------------------------------------|

| · | $611,000                  and $1,028,000 - modular medical                  interiors |
|--------|---------------------------------------------------------------------------------------|

| · | $274,000                  and $456,000 - other aerospace and medical transport                  products |
|--------|----------------------------------------------------------------------------------------------------------|

**Cost        of medical interiors and products**

***General        Expenses***

**Depreciation        and amortization expense**

**General        and administrative (G&A) expenses**

**Interest        expense**

**Income        tax expense**

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*Table            of Contents*

**LIQUIDITY        AND CAPITAL RESOURCES**

***Sources        and Uses of Cash***

**Outlook        for 2007**

*Community-Based        Services*

*Hospital-Based        Services*

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*Table            of Contents*

*Products        Division*

*All        Segments*

**CRITICAL        ACCOUNTING POLICIES**

----

*Table              of Contents*

*Revenue        Recognition*

*Deferred        Income Taxes*

*Depreciation        and Residual Values*

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*Table              of Contents*

| **Item                  3.** | **Quantitative                  and Qualitative Disclosures about Market                  Risk** |
|------------------------------|--------------------------------------------------------------------------------------------------|

| **Item                  4.** | **Controls                  and Procedures** |
|------------------------------|----------------------------------------------|

**DISCLOSURE        CONTROLS AND PROCEDURES**

**CHANGES        IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

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*Table            of Contents*

**PART        II: OTHER INFORMATION**

| **Item                  1.** | **Legal                  Proceedings** |
|------------------------------|----------------------------------------|

| **Item                  1A.** | **Risk                  Factors** |
|-------------------------------|-----------------------------------|

| **Item2.** | **Unregistered                  Sales of Equity Securities and Use of                  Proceeds** |
|------------|---------------------------------------------------------------------------------------------------|

| **Item                  3.** | **Defaults                  upon Senior Securities** |
|------------------------------|------------------------------------------------------|

| **Item                  4.** | **Submission                  of Matters to a Vote of Security                  Holders** |
|------------------------------|-------------------------------------------------------------------------------------------|

| **Item5.** | **Other                  Information** |
|------------|----------------------------------------|

| **Item                  6.** | **Exhibits** |
|------------------------------|--------------|

|   | 31.1 | Chief                  Executive Officer Certification adopted pursuant to Section 302                  of the                  Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Chief                  Financial Officer Certification adopted pursuant to Section 302                  of the                  Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32 | Certification                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002 |
|--------|----|-------------------------------------------------------------------------------------------------------------------|

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*Table            of Contents*

**SIGNATURES**

|                                             |   | **AIR                  METHODS CORPORATION**  |                                      |
|--------------------------------------------------|--------|----------------------------------------------------|-------------------------------------------|
|                                             |   |                                               |                                      |   |
|                                             |   |                                               |                                      |   |
|                                             |   |                                               |                                      |   |
| Date:  August                  9, 2007 |   | By                                                 | /s/                  Aaron D. Todd        |   |
|                                             |   |                                               | Aaron                  D. Todd            |   |
|                                             |   |                                               | Chief                  Executive Officer  |   |
|                                             |   |                                               |                                      |   |
|                                             |   |                                               |                                      |   |
| Date:  August                  9, 2007 |   | By                                                 | /s/                  Trent J. Carman      |   |
|                                             |   |                                               | Trent                  J. Carman          |   |
|                                             |   |                                               | Chief                  Financial Officer  |   |
|                                             |   |                                               |                                      |   |
|                                             |   |                                               |                                      |   |
| Date:  August                  9, 2007 |   | By                                                 | /s/                  Sharon J. Keck       |   |
|                                             |   |                                               | Sharon                  J. Keck           |   |
|                                             |   |                                               | Chief                  Accounting Officer |   |

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