No details were immediately available on the nationalities of the victims.
A health ministry spokesman said that two of the wounded were in serious condition.
High wind speeds over Luxor caused the balloon to crash, killing one foreign passenger and injuring seven others, according to reports in the local media.
Hot air balloon flights above Luxor are famous among tourists because of the spectacular views of the ancient Karnak and the temples of Luxor.
This was exacerbated by the 2015 Russian plane crash, which killed all 224 passengers and crew on board, a lot of them Russian tourists.More news: Citi analysts see 40% chance Apple will buy Netflix
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"About 20 people were on board when the accident occurred on Friday".
The tourists, from Britain, France, Hong Kong, Hungary and Japan, died when the balloon plummeted to the ground after catching fire.
In 2016, 22 Chinese tourists were injured when their balloon crash landed, after which Egypt temporarily halted balloon rides.
After that bombing, Russian Federation imposed a ban on all flights to Egypt and Egypt's national carrier is still barred from flying to Russian Federation.