The Cabana Airways Boeing 737 was travelling from Havana to Holguin on a domestic flight when it came down just after taking off from Jose Marti International Airport.
Footage shows a fireball rising up from behind trees as people in the street gasp with shock.
"We heard an explosion and then saw a big cloud of smoke go up," said Gilberto Menendez, who runs a restaurant near the crash site in the agricultural area of Boyeros.
Three survivors, all women, were pulled from flaming plane wreckage, with the other 107 passengers and crew feared dead.
The UK Foreign Office told Sun Online it was in contact with the Cuban authorities to investigate whether there were any British passengers aboard.
The plane lay in a field of yuca-root plants and appeared heavily damaged and burnt
"We heard an explosion and then saw a big cloud of smoke go up," said Gilberto Menendez, who runs a restaurant near the crash site in the agricultural area of Boyeros, some 12 miles south of Havana.
The airliner came down in a field and wooded area, with firefighters spraying water on its smouldering wreckage.
Bodies and parts of the aircraft have been found scattered about the area.
State-controlled media said there were only three survivors out of a total of 110 crew and passengers.
They were said to be fighting for their lives.
Government officials including President Miguel Diaz-Canel rushed to the site, along with a large number of emergency medical workers and ambulances.
Pictures showed survivors being ferried to ambulances before being rushed to hospital.
Relatives of passengers rushed to the scene, among them a man who said his wife and niece had been on board.
He declined to provide his full name before he was taken to an airline terminal where relatives were being asked to gather.
"My daughter is 24, my God, she's only 24!" cried Beatriz Pantoja, whose daughter Leticia was on board the plane.
Emergency personnel rush to the crash sites
Carlos Alberto Martinez, director of Havana's Calixto Garcia hospital, said four victims of the crash had been were brought there and one died.
A relative of one survivor said: "She is alive but very burnt and swollen."
The Boeing 737-201 aircraft was built in 1979 and leased by Cuban airline Cubana from a small Mexican company called Damojh, according to the Mexican government.
Damojh in Mexico said it did not immediately have any more information. Cubana declined to comment.
The crash Friday was Cuba's third major fatal accident since 2010.
Last year, a Cuban military plane crashes into a hillside in the western province of Artemisa, killing eight troops on board.
In November 2010, an AeroCaribbean flight from Santiago to Havana went down in bad weather as it flew over central Cuba, killing all 68 people, including 28 foreigners, in what was Cuba's worst air disaster in more than two decades.
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