The victims' names had not been released.
The newspaper said it was the state's worst aviation mishap in years.
The National Transportation Safety Board said the plane was operating as an air taxi. Clint Johnson of the NTSB in Anchorage told the Daily News said it was not clear who was flying the plane, what caused the crash, or whether it occurred on take-off or landing.
The newspaper said state records showed the aircraft was registered to Lyla and Walter Rediske, with an address in Nikiski.
Ray Liotta sues skin care company over use of likeness
Aaron Carter is still in love with Hilary Duff