The tourists had been floating over the west bank of Luxor, one of Egypt's most renowned archaeological sites and home to the famous Valley of the Kings and the grand Temple of Hatshepsut.
It was not immediately clear what caused the accident although the security official said the balloon might have hit a mobile phone mast.
French consular sources said the gondola had become detached from the balloon, perhaps because it was overloaded. In all, there were 24 tourists on board.
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