The balloon was carrying 20 people at the time of the accident. The deceased was identified as a 36-year-old South African woman, state-run Al Ahram reported.
The balloon was travelling over the ancient city when it was forced off course and into a mountainous area by strong winds.
Those on board the flight included a number of foreign nationals along with Egyptian tourists.
Luxor has witnessed hot air balloon accidents in past years.
In 2013, 19 tourists, including nine from Hong Kong, were killed when their balloon caught fire.
In 2016, 22 Chinese tourists were injured when their balloon crash landed, after which Egypt temporarily halted balloon rides.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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