Maltese Prime Minister Joseph Muscat said a total of 109 passengers had been released from the hijacked Libyan plane which landed in Malta on Friday.
Muscat said an initial group of 25 women and children released from the plane were quickly followed by nearly all of the 118 people on board the Airbus A320 jet.
An airliner on an internal flight in Libya was hijacked by a man claiming to have a hand grenade on Friday and diverted to Malta, where it landed with 118 people on board.
The hijacker told crew he was "pro-Gaddafi" and that he was willing to let all 111 passengers leave the Airbus A320, but not its seven crew, if his demands were not met, the Times of Malta said.
Former Libyan leader Muammar Gaddafi was killed in an uprising in 2011, and the country has been racked by factional violence since.
Troops took up positions a few hundred metres (yards) from the plane as it stood on the tarmac and no one was seen boarding or leaving it.
The aircraft´s engines were still running 45 minutes after it landed in late morning, the Times of Malta said.
All other flights at Malta International Airport were cancelled or diverted, it said.
The aircraft had been flying from Sebha in southwest Libya to Tripoli for state-owned Afriqiyah Airways, a route that would usually take a little over two hours.
The tiny Mediterranean island of Malta, a European Union member, is about 500 km (300 miles) north of Tripoli.
Maltese Prime Minister Joseph Muscat tweeted: "Informed of potential hijack situation of a #Libya internal flight diverted to #Malta.
Security and emergency operations standing by -JM".
