That doesn't quite work.  Canadian airlines regulations say that someone cannot board a plane if they present as a different gender than that shown on their identification.

That means that the transgendered individual who presents as a woman but whose ID says "male" cannot get on a plane.  Ditto for the transman whose ID says they're female.

And it's not just trangendered individuals that get caught out on this.  An intersex friend was assigned male at birth - it wasn't until she hit puberty that female characteristics started to appear - first in the form of breasts.  If you see her now you would never mistake her for a man.  But, because she was born someplace where she can't change the ID on her birth certificate she's seriously restricted on where she can travel.  Her passport says female so that much is fine but the airline computer systems are tied into government databases that show her as male.  Literally means that she cannot fly back to where she was born.