A world war II-era fighter plane has crashed by grandstands at the National Championship Air Races near Reno, killing three people and injuring dozens, according to reports.

A P-51 Mustang, named ‘Galloping Ghost’ crashed into crowds and shattered into pieces, after it appeared to go out of control at the race in Nevada.

54 people were taken to hospital after the crash, according to Mike Houghton, head of the Reno Air Racing Association and CEO of the event.

At least 15 people were in a critical condition.

The cause of the crash is unknown, but it is thought that there was a mechanical fault - the incident is still being investigated by The National Transportation Safety Board.