On December 12, 2018, about 1430 Hawaii-Aleutian standard time, a Hawker Hunter MK-58, N323AX, was destroyed when it was involved in an accident near Honolulu, Hawaii. The pilot was seriously injured. The airplane was operated as a Title 49 United States Code Sections 40102 and 40125 non-military public aircraft. The pilot reported that the airplane taxi and runup on the runway were normal. After takeoff, he experienced a loss of engine power at or below 500 ft above ground level during the departure turnout from runway 08R at Daniel K Inouye International Airport (HNL), Honolulu, Hawaii. He attempted to restart the engine, but the airspeed continued to decay, so he decided to eject. Before ejecting, the pilot maneuvered the airplane and waited until he was clear of a parasailing boat before assuming an optimal body position and pulling the ejection handle. After he ejected from the airplane, the pilot reported that he swung once in the parachute before water entry. The airplane impacted the water and became submerged in the ocean about 2.86 nautical miles southeast from the departure end of runway 08R in an area with a water depth of about 250 ft. Witnesses reported two external fuel tanks floating on the ocean surface shortly after impact but reported that the remainder of the airplane was intact and sunk. Wreckage recovery personnel recovered portions of the instrument panel, fuselage, and engine sections; the throttle quadrant, low pressure cock, exhaust gas temperature gauge, rpm gauge, temporary traffic control switch, temporary traffic control box, and G3X secure digital card were not recovered. Postaccident examination revealed that the recovered instrument panel gauges exhibited extensive damage due to the impact; the airspeed gauge indicated 179 knots. The engine's compressor blades showed signs of damage from the engine casing being pushed inward, consistent with water impact. The degree of blade impact deflection observed and lack of “corn cobbing” indicated that the blades were turning upon impact but not likely at full power. The engine was rotated by hand and showed no indications of seizure. The throttle linkage to the fuel control unit moved smoothly, indicating no signs of failure. The fuel line gaskets were in good condition and the line was fully functional. The bleed air valve opened and closed when moved by hand. The fuel filter was clean. The high-pressure fuel pumps turned when rotated by hand. All recovered components that were inspected or tested and that could reasonably have resulted in a loss of engine power were assessed to be fully functional at the time of the accident.