Police say the Route 56 SEPTA bus was traveling north on Torresdale Avenue near Church Street around 3 a.m., when the bullet, fired from the outside, pierced the side of the bus.
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There were seven passengers and the driver on the bus at the time. They reported hearing at least one gunshot.
A passenger who had been sitting toward the middle of the bus was shot in his arm.
"I hear something go 'boom,'" said Quinzel Kane, the man who was hit by the bullet. "As soon as I heard the bang, I felt the pain."
Kane asked the driver to keep going because he wasn't sure if the shooter was still out there.
"We both decided we should keep the bus going because we don't know if anyone on this bus is the intended target," Kane said.
The driver pulled over four blocks later near Orthodox Street.
Kane was taken to the hospital in stable condition.
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The bullet went straight through his right forearm. He believes the inhaler he had in his pocket prevented the bullet from hitting him anywhere else.
"I honestly think the inhaler saved my life," Kane said.
"He's unlucky he got struck by gunfire, but he's lucky he was only shot in the arm and he is in stable condition, and he is conscious, walking, and talking and cooperating with police," said Philadelphia Police Chief Inspector Scott Small.
Police searched for ballistic evidence around Torresdale and Church but did not find any.
A SEPTA spokesperson released a statement saying in part, "This was a horrific incident. Our thoughts are with the victim as he recovers from the gunshot wound."
The search for who fired the shot continues.