Amazon has decided to halt its Prime Air drone-delivery plans in Italy, pausing the project tied to the San Salvo (Abruzzo) test area and withdrawing its operator certification, according to Italy’s civil aviation authority ENAC. The project may continue in another European country, but no specific details are yet known about its relocation.
Amazon said the move follows a “strategic review”: despite positive engagement with aerospace regulators, Italy’s broader business/regulatory framework “does not, at this time, support” the company’s long-term objectives for the service.
For last-mile innovation, it’s a reminder: scaling depends as much on the local operating context as on the tech itself.
Italy was set to be Amazon’s first EU market for drone deliveries after tests completed in December 2024. ENAC called the decision unexpected and said it may relate to internal company policy and “recent financial events”; Italian media have linked this to Amazon’s recent tax dispute settlement.
Italian media have also pointed to Amazon’s recent tax settlement as part of the wider context behind the stop-start nature of large innovation projects. In December 2025, Amazon reached an agreement with the Italian tax authorities over VAT linked to online sales in the 2019–2021 period, paying €511 million; Italian wire reports add that another €212 million had already been paid by Amazon Logistics and Amazon Italia Transport, bringing the overall settlement to €723 million.
The agreement closes a side of the dispute, but reporting in Italy notes that a separate investigation track remains open, with prosecutors previously estimating a much larger potential exposure. It is important to emphasise that neither Amazon nor ENAC has formally tied the stops to drone delivery to the settlement: Amazon’s official line remains a “strategic review” and a local environment that doesn’t yet support its long-term goals.
Italy isn’t an isolated case: Amazon has already stepped back from its innovative drone delivery projects ending Prime Air operations in Lockeford, California, on April 22, 2024, while re-allocating resources in Arizona and Texas, a decision taken in order to “prioritize our resources to continue growing the program”. Elsewhere.
Is it possible that Amazon will reconsider based on the same logic of flexibility? Italy, after all, remains a strategic territory: 25 billion euros have been invested in Italy over the last 15 years and according to the company’s website, Amazon employs here over 19,000 people on permanent jobs, and operates across more than 60 facilities throughout the country – including operations, corporate offices, data centres, and customer service offices.
In any case, it’s useful to consider that with or without Amazon drones, the ‘San Salvo u-space’ will be operational from January, the first of its kind in Europe: a portion of airspace in which, according to ENAC, ‘manned flights and remotely piloted flights are integrated, an essential element in ensuring the full and safe operation of unmanned aircraft, allowing for experimental activities and emergency operations.’ An advanced logistics centre that serves as an innovative hub for those wishing to tackle the new frontier of intermodal transport.
It is therefore possible that drone delivery in Italy will soon become a reality. With or without Amazon.
(The image in the opening is purely representative and AI generated)
