UPDATE 3-Air Canada posts net profit, sees recovery signs

* Net profit C$2.44/shr vs year-earlier loss of C$1.32/shr

* Adjusted loss C$0.19/shr

* Sees green sprouts, full recovery in 12-18 months (Adds details from conference call, analyst comments)

By Susan Taylor

OTTAWA, Nov 6 (Reuters) - Air Canada (ACa.TO) (ACb.TO) reported a quarterly net profit on Friday and said it sees signs the bottom of the recession is behind it although it does not expect a full recovery for another 12 to 18 months.

The country's biggest airline said its results continue to be bruised by economic weakness and declines in passenger and cargo revenue, but conditions are no longer deteriorating.

"The worst of the worst seems to be behind us," Chief Executive Calin Rovinescu said on a conference call with analysts. "Sprouts of green are coming up from the earth."

Air Canada said its cautious outlook reflects the company's reliance on premium, business-class travel over leisure travel to drive revenue.

Premium cabin yield sank nearly 20 percent in the third quarter from the same period in 2008 on waning corporate demand, while economy cabin yield fell 10.4 percent.