Video shows spectators who watch while the plane came to them.
Then it started to turn and slide slowly into the air before it dropped to the ground.
The aircraft then fell out of sight behind some buildings when it came lower and lower.
Seconds later, a huge explosion could be seen above the tops of the structures where he fell behind.
Black smoke rose in a shocking plume in the air.
Organizers of the West Coast Air Show said there was a fatal accident with the Impala Mark 1 plane.
It was governed by highly respected South African test pilot James O'Connell.
This is the moment that an airplane crashed in a massive fire ball in an air show in South Africa, leave the pilot dead
Video shows spectators who watch while the plane came to them
Seconds later, a huge explosion could be seen above the tops of the structures where he fell behind
The crash took place at the West Coast Air Show in Baldanha, a city about 70 miles north of Cape Town, on Saturday.
According to Elawayne Gouws, the director of West Coast Medical Rescue, the pilot died at an impact.
It burst into flames for more than 2,000 spectators and the event ended abruptly.
Tragic photos on social media show the jet only a few hours before it crashed.
The man who took the photo posted: 'Heartbreaking afternoon.
'I took these photos of this Impala plane just a few hours before it tragically crashed in the West Coast Air Show.
'My deepest condolences with the pilot family. May he rest in peace. '
A statement on social media by the organizers of the show was: 'It is with deep sadness that the organizers of the West Coast Airshow confirm a fatal accident with James O'Connell, a very competent and respected test pilot from South Africa.
Black smoke rose in a shocking plume in the air
'Mr. O'Connell carried out a routine display that was meant to demonstrate the possibilities of the Impala Mark 1 – a beloved Warbird with a deep historical significance for many South Africans.
'It was mainly a huge moment because the Impala has not performed in air shows for many years.
'The maneuvers were performed as part of the official Air Show program, witness by thousands of spectators.
'Eyewitness accounts report that the aircraft seemed to be under control during most of the display.
'During one of the last maneuvers, however, the plane experienced a sudden loss of height and he entered a steep dive before the contact made with the ground.
“Our thoughts and deepest sympathies are with the family of James, loved ones and everyone struck by this very tragic event.”
Gouws, the director of West Coast Medical Rescue, told Nieuws 24 that Medici arrived on the spot within two minutes and had overwhelmed the wreck in flames'.
