A tram derailed and crashed into a building in Milan on Friday, killing two people and injuring 38 others.

One of the dead was hit by the tram as it derailed while the second victim was a passenger, the city’s mayor, Giuseppe Sala, told reporters at the scene.

Firefighters wrapped shocked passengers in emergency blankets while ambulances took the more seriously injured to hospital.

The Italian prime minister, Giorgia Meloni, expressed her “deepest condolences” over the deaths.

An initial investigation suggested the driver had not activated a track switch, according to media reports. The driver had also reportedly run through the last stop on the line before the accident.

“There was a man who was trapped under the tram, his arm was trapped,” witness Valerio Gaglione told AFP.

“There were lots of people injured inside the tram. I saw an old man completely covered in blood.”

Prosecutor Marcello Viola, the lead investigator, said the tram’s impact on the building was “devastating”.

One victim was an Italian in his 60s, while the other was a foreign national who lived in the city, according to Sala.

He added: “It doesn’t look like it was a technical issue, but was connected to the driver,.”

Witnesses told the media that the tram had been travelling fast. But it was not immediately clear if it was breaking the 50km (31 miles) per hour speed limit for trams.

“I just heard an enormous bang,” said Anna, who was in her office nearby when the crash happened.

“I saw a bit of the tram had gone into a shop,” she added.

The yellow and white tram could be seen slung across the road, just outside the centre of the city.

One passenger told the ANSA news agency: “I thought it was an earthquake. I was sitting and ended up on the floor, along with the other passengers. It was terrible.”

Milan has just hosted the 2026 Winter Olympics and is preparing to host the Paralympics. The city is currently staging Milan fashion week.