The Australian Transport Safety Bureau (ATSB) has launched an investigation into hot air balloon crashes at Wangaratta's Art of Flight Festival, resulting in injuries to two people on the ground.

According to an ATSB report, balloons suffered multiple rope tethers after a sudden wind change during a static display at the Wangaratta Racecourse on the night of 11 April.

One balloon became airborne before crashing into the terrain, which resulted in injuries to a person on the ground.

Another balloon was placed under extreme tension, and the basket became briefly airborne before landing hard, resulting in injuries to an additional person on the ground.

Art of Flight Festival spokesman Michael Zissler said the incidents occurred about 15 minutes into the Balloon Glow, with one of the injured persons requiring hospitalisation.

"The glow had to be shortened from its planned length to make way for the drone show," he said.

"The drone show was delivered in full as the unexpected winds had abated.

"Overall it was a marvellous evening enjoyed by young and old alike and many good memories were made."

Mr Zissler said the Art of Flight team have remained in contact with the injured parties, who were home and "well on the way to recovery".

The report said the ATSB is investigating the incident, which will involve interviewing witnesses, involved parties, reviewing recorded data and the collection of other relevant information.

“A final report will be released at the conclusion of the investigation,” it read.

“Should a critical safety issue be identified during the course of the investigation, the ATSB will immediately notify relevant parties, so that appropriate safety action can be taken.”

The week-long festival ran across the North East and concluded with major public events in Wangaratta and Benalla.

Just over 3000 attendees attended the Saturday night spectacle at the Wangaratta Turf Club.