Those on board the flight included a number of foreign nationals along with Egyptian tourists, BBC reports.
In 2013, 19 tourists were killed when a hot air balloon caught fire in Luxor.
Luxor governor Mahmoud Badr confirmed Friday's accident, adding that he was checking on the wellbeing of passengers at a local hospital, AFP news agency reports.
No further details have been provided on the extent of the injuries or nationalities of the wounded but reports suggest that about 20 passengers were on board.
Hot air balloon crashes have occurred in the region before.
In 2016, balloon flights were temporarily halted in the city after more than 20 people were injured in a similar accident.
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