The Biden administration announced new rules that mandate automatic cash refunds for canceled or significantly delayed flights and protect consumers from surprise junk fees in air travel. 

"These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers over half a billion dollars every year in hidden and surprise junk fees," the White House said in a statement released early Wednesday. 

The U.S. Transportation Department is finalizing on Tuesday new rules that require upfront disclosure of airline fees and mandate refunds for delayed baggage or inoperative services like onboard Wi-Fi.

The rules, which were nearly three years in the works, will require airlines and ticket agents to tell consumers upfront about baggage or change and cancellation fees. The department said consumers are expected to save $543 million annually in excess airline fees.

In an effort to crack down on airlines that charge passengers steep fees to check bags and change flights, the U.S. Department of Transportation has announced new regulations aimed at expanding consumer protections.

One of the final rules announced Wednesday requires airlines to show the full price of travel before passengers pay for their tickets. The other will force airlines to provide prompt cash refunds when flights are canceled or significantly changed.