We are initiating coverage on AERO with a 12M PT of P$42.0 per share and an Outperform rating. Our PT implies an upside potential of 40% over the stock’s current trading price. In addition, we provide deep insights into oil industry topics. AERO results in a very attractive investment option considering its attractive valuation and long-term fundamentals amidst the PAX recovery phase. Increases in oil might be less challenging for AERO, while other carriers may inevitably experience pressure on margins (from their more price-sensitive customers).