The Egyptian authorities have yet to comment on the incident.
The balloon was carrying tourists from different nationalities and Egyptians. Of the 12 injured, two were in a serious condition, MENA said. Ten of the 12 injured tourists who were admitted in the Luxor International Hospital were discharged.
In 2009, 13 tourists were injured when their hot air balloon struck a communications mast in Luxor and crashed.
According to a security source that spoke to Ahram Arabic website, the hot-air balloon crashed due to strong wind.
New Zealanders are understood to have been involved in a fatal hot air balloon crash in Egypt.
The pilot and one tourist survived by jumping from the balloon, officials said at the time.
Hot air balloon companies in Luxor offer the tours usually starting at sunrise.
In a similar incident in 2013, 19 tourists from Europe and Asia, were killed when a sightseeing balloon caught fire in Luxor. Also, balloons are now monitored by 22 cameras during the flight, San Francisco Chronicle reported.