Passengers reacted calmly despite the massive hole in the side of the fuselage caused by the explosion
Cabin crew moved the remaining passengers to the front and rear of the aircraft to keep it balanced for landing
One of the people onboard the flight filmed the aftermath of the explosion where the remaining passengers at calmly until the aircraft returned to the airport.
Mohamed Hassan, a police officer in nearby Balad town, said residents had found the dead body of an old man who might have fallen from a plane.
Balad is an agricultural town about 18 miles north of Mogadishu.
Somalia faces an insurgency perpetrated by the Somali Islamic extremist group al-Shabab, which is responsible for many deadly attacks across the nation.
Aviation sources have suggested the aircraft was delayed leaving Mogadishu this afternoon meaning the suspected bomb, if it was on a timer, went off at a lower altitude, giving the passengers on board a greater chance of survival.
John Goglia, former member of the US National Transportation Safety Board member said only a bomb or a pressurisation blowout caused by fatigue could cause such a hole in the side of the aircraft.
However, the black soot around the hole would indicate a bomb.
He said the incident happened before the aircraft hit its cruising altitude which would reduce the possibility of a pressurisation event.
He added: 'We don't know a lot, but certainly it looks like a device.'
Two people are reported to have been injured after the fire broke out on the Daallo Airlines plane
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