his KD should still go up.. he killed one AC.. why did his KD go down?
Say he started with a 2/1 K/D. The hop he mentions he killed a plane and died himself, which is a 1/1 K/D. That lowers his overall average, but without knowing how "strong" his 2/1 average was, you can't really say how much it would hurt him, just that it would. If his 2/1 average was based on 200 kills/100 deaths, it wouldn't drop as much as if it was based on 8 kills/4 deaths.
In one example, he'd now have 201 kills/101 deaths (1.99 K/D). In the other he'd have 9 kills/5 deaths (1.8 K/D).
With his "actual" K/D of 2.14, even if the PT boat would have counted towards his score, the 2/1 K/D for the hop in question would have lowered his overall K/D. Had he lived, it would have helped his overall K/D whether the PT counted or not.