Expo Aviation used larger 52-seater aircraft for scheduled flights between Colombo and Jaffna during the island's long-running civil war when the Jaffna peninsula was cut off by land.
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Demand had dropped after a land route to Jaffna via the A-9 highway was opened after the war ended.
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Daily demand for seats had dropped from 200 to 36 after the land route was opened, the report said.
The Sunday Times said the Cessna Grand Caravan had cost 2.6 million US dollars. The firm may also add extra capacity if demand grows, the report said.