Scotia bank review OUR TAKE: We are maintaining our SO rating on AC, and it remains our preferred airline pick in Canada. After several quarters of downward revisions, we believe that PASM trends are looking up again, and this should lead to margin expansion and earnings upside. This, along with other potential catalysts, such as closure of the Aimia deal and ongoing deleveraging, should help the shares, in our opinion. We believe that the AIM deal can help 2019 margins by at least 160 bp, which is a critical factor and should help multiple expansion for AC. Our estimates and TP have been raised after Q3 results, and we remain bullish on the story.