Spectators at the Avalon Airshow were left stunned when the plane lost control and crashed into the tarmac during a demonstration on Friday afternoon.
Police confirmed the aircraft's pilot, who was the sole occupant, has suffered serious injuries.
"The incident occurred a significant distance away from spectators and there have been no reports of further injuries," Victoria Police said in a statement.
"The exact circumstance surrounding the crash are yet to be determined."
Almost 250,000 spectators were expected to flock through the gates of the airport, between Melbourne and Geelong, for the biennial air show from Friday to Sunday.
The crash is believed to have taken place during a solo aerobatic display, hosted by a NSW event management company.
It featured the Wolf Pitts Pro, an aircraft with a top speed of 414kmh and the ability to withstand large G-forces.
The airshow and other emergency services have been contacted for comment.
