WASHINGTON, DC — U.S. airlines will now be required to give travelers an automatic refund if their flight is canceled or significantly delayed or if their luggage is lost along the way, the Transportation Department said Wednesday.

The new rules tackle two of the most difficult issues for travelers to sort out — getting a refund and being surprised by what President Joe Biden has called “junk fees” tacked on as they finish booking their flights.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” Transportation Secretary Pete Buttigieg in a statement.

The changes will not only save passengers “time and money,” but also take some of the hassle out of flying, Buttigieg said.

Here’s what the new rules mean for travelers:

Current rules allow the airlines to decide how long flight delays must last before triggering refunds. The new rules eliminate that wiggle room by defining a “significant delay” as one that lasts at least three hours for domestic flights and at least six hours for international flights.

Refunds Will Be Speedier

Passengers will be compensated more quickly.

Airlines are now required to make automatic cash refunds within a few days for these inconveniences. They can still offer to put delayed passengers on another flight or issue a travel credit, but they reserve the right to reject the offer.

The new rule also applies to refunds of checked-bag fees if the bag isn’t delivered to the destination within 12 hours of landing for domestic flights and 15 to 30 hours for international flights.

Passengers can also get refunds if the departure or arrival of a flight is changed from the one originally booked; when connections are made to airports that are less accessible to a person with a disability; or when the number of connecting flights is increased due to scheduling changes.

Passengers who pay for internet or seat selection that become unavailable due to significant changes can also get a refund for that.

When Doctors Ground Passengers

People who have booked flights but are unable to fly because of government restrictions or under a doctor’s order are entitled to a travel voucher or credit.

The transferable credits are good for at least five years after the date of issue.

Fees Must Be Disclosed Upfront

Airlines are required to disclose upfront what they charge for checked and carry-on bags or for canceling or changing a reservation. On airline websites, the fees must be shown the first time customers see a price and schedule, not trickled out throughout the booking process.

The rule doesn’t stop airlines from charging more to choose certain seats, as several do, but they must tell passengers they have a guaranteed spot on the plane that they won’t have to pay more for and what they’ll have to pay for an upgrade to an exit-row seat or one near the front of the cabin.

That rule is estimated to save consumers more than $500 million a year, the Transportation Department said.

When The Rules Start

The new rules have varying start dates.

Airlines must begin making automatic refunds within six months, but have a year before they’re required to issue travel vouchers and credits to people who have been advised by a medical professional not to fly.

What Airlines Say

Complaints about refunds skyrocketed during the COVID-19 pandemic, as airlines canceled flights and, even when they didn’t, many people didn’t feel safe sharing a plane cabin with other passengers.

Airlines for America, a trade group for large U.S. carriers, noted that refund complaints to the Transportation Department have fallen sharply since the height of the pandemic.

A spokesperson for the group told The Associated Press that airlines “offer a range of options — including fully refundable fares — to increase accessibility to air travel and to help customers make ticket selections that best fit their needs.”

The group said the 11 largest U.S. airlines issued $43 billion in customer refunds from 2020 through 2023.

The Associated Press contributed reporting.