An official from Luxor's governor's office said the person killed was a 36-year-old woman from South Africa.
The accident occurred in Luxor, in southern Egypt, which is popular with tourists due to its number of ancient temples and ruins.
The flight crash-landed west of the city on a desert road on Friday morning after strong winds blew the balloon off course above the city's temples and tombs.
The body of the deceased American tourist and the seven other injured were transferred to Luxor International Hospital.More news: Mega Millions, Powerball Start New Year With Big Jackpots
The balloon was carrying both Egyptians and foreign tourists, with the nationality of the latter not yet having been disclosed. One tourist killed and twelve injured.
Hot air balloon crashes have occurred in the region before. This was exacerbated by the 2015 Russian plane crash, which killed all 224 passengers and crew on board, a lot of them Russian tourists. Also, balloons are now monitored by 22 cameras during the flight, San Francisco Chronicle reported.
This is not the first hot air balloon crash recorded in the city of Luxor in the recent years.