According to sources, Bloomberg reported on May 9 that UBS Group has instructed bankers to stop flying business class on short-haul trips in China as part of its global travel policy adjustments aimed at cutting costs in slowing Asian markets.
Bankers focusing on China business are no longer exempt from the requirement that business class flights must exceed five hours, a rule that has been in place for years in other countries. Due to the nature of the matter, the sources requested anonymity. A UBS representative declined to comment on the issue.
This change comes as trade tensions between the US and China escalate, and trading and capital market activities in China have significantly slowed down.
The Greater China region has been a key driver of growth and the largest profit contributor to UBS’s Asian business. Hong Kong serves as an important hub for Wall Street and European financial firms in Asia, with bankers stationed there frequently flying to mainland China to serve clients.
One source mentioned that bankers focusing on the Chinese market were able to enjoy the privilege of business class on short-haul flights partially due to lower ticket prices in Hong Kong compared to similar distance fares in other markets. For instance, a business class one-way ticket from Hong Kong to Shanghai, a flight of just under three hours, sometimes costs less than $500.
Since the acquisition of Credit Suisse in 2023, UBS has cut more than 10,000 jobs and reduced costs. Recently, UBS has been conducting job cuts in Europe, including in Switzerland, France, and Italy.