The plane hit a car with a family of four inside as a result of landing outside the runway, the newspaper reported, adding that the five-year-old girl died from burns and her nine-year-old brother sustained injuries.
The boy was taken to the hospital in critical condition along with the parents, la Repubblica reported, adding that the pilot was also hospitalized.
A video, disseminated by Italian media, showed the moment of the pilot's bailout at a low altitude.
The organizers of the air show dedicated to the centenary of Frecce Tricolori, scheduled for Sunday, decided to cancel the event after the accident.
The Frecce Tricolori aerobatic team is the Italian Air Force's demonstration team, akin to the US Navy's Blue Angels, British Royal Air Force Red Arrows, or the Russian Knights. Frecce Tricolori is known to be among the best of the best with their displays showcasing some of the most dangerous stunts requiring precision flying.