Followed this extensively on the PPRUNE forum. The Russians, who have most visitors in the area are also not allowing any hold baggage. Sharm is full with hold bags to be sent forward, to the point that people have been told to leave their luggage at their resort hotels for collection and onward carriage. The irony of this is that the investigation of the downed Metrojet A321 are now focusing on the theory that a bomb was planted in a holidaymaker's luggage at a hotel. Given the appalling lack of security in the hold baggage handling area at Sharm, (flagged up when the UK authorities who went to Sharm to check security after the crash, checked the CCTV images, and immediately advised airlines to stop hold luggage to be loaded onto any flights), the backlog occurred.
It also has not helped that the Egyptians are more accommodating about repatriation flights to Russia (seeing as they are the resorts biggest spenders and represents the majority of the resorts visitors). Keeping them sweet is far more important than UK visitors, so their aircraft have been given priority to the point of UK flights heading down to Sharm to pick up passengers having to divert to Paphos and Larnaca when Egyptian ATC denied them landing permission.
Easyjet hired a Titan Airways 767 (which was also diverted to Cyprus) to try and clear the backlog, whilst Monarch had one flight turn back to the UK when over Croatia and another divert whilst on final approach to Sharm and head for Hurgada. Egyptair have flown a cargo flight to Stanstad with what is believed a large amount of UK passengers hold baggage being repatriated. Its not the size of plane but the pecking order, and because the UK flagged the problem first, and hacked off the Egyptians their citizens are at the bottom of the pile. Its more political than logistical.