Officials said the Sita Air aircraft crashed after its wings hit the wall while landing due to thick fog, Ekantipur reported.
The incident happened at 7:10 am local time when the aircraft which had taken off from Nepalgunj was landing at the Simikot airport in Humla district of north-western Nepal.
"The aircraft crashed after its wings hit the wall while landing due to thick fog," the report quoted Parshuram Chaudhary, station manager at Nepalgunj as saying.
All five passengers along with two crew members on board the aircraft were unhurt, it added.
In September 2012, 19 people including seven Britons and five Chinese, were killed when a small plane of the same airline crashed soon after take off from Tribhuvan International Airport in Kathmandu due to a bird hit.