The aircraft came down just after taking off from Boufarik military airport, west of Algiers.
An inquiry is under way into the cause of the crash - Algeria's worst-ever air disaster. The government has declared three days of national mourning.
Most of the dead are army personnel and their families, the defence ministry says. Ten crew members also died.
Passengers from Western Sahara, a disputed territory annexed by Morocco after Spain withdrew in 1975, were among the fatalities.