ARLINGTON, Virginia April 24 (Reuters) - The U.S.

Transportation Department finalized new rules Wednesday

requiring upfront disclosure of airline fees and mandates quick

cash refunds for canceled flights, as well as 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.

President Joe Biden has repeatedly heaped criticism on the

airline industry over the last two years.

"Too often, airlines drag their feet on refunds or rip

folks off with junk fees," Biden said Wednesday, arguing the new

mandate will ensure "automatic refunds to passengers when

they're owed, and protect them from surprise fees."

The new rules require airlines and ticket agents to disclose

extra service fees alongside the full fare, the first time fare

and schedule information is displayed online.

The refund rules apply to cancelled flights by carriers

regardless of the reason including if it is because of weather.

But passengers are not entitled to refunds if they are rebooked

and travel on another flight

The government will also require airlines to refund baggage

fees if bags are not delivered within 12 hours of domestic

flights arriving or 15 to 30 hours of their international flight

arrivals, as well as for services that do not work or are not

provided. Airlines must promptly and automatically issue refunds

if flights are canceled.

Transportation Secretary Pete Buttigieg said passengers are

supposed to get refunds for canceled flights but the new rules

make clear they must get cash within seven days -- not vouchers.

"No more defaulting to vouchers or credits," Buttigieg said at

an event at Reagan National Airport outside Washington.

Airlines for America, a trade group representing major

carriers including American Airlines ( AAL ), Delta Air Lines ( DAL )

and United Airlines, said carriers "offer

transparency and vast choice to consumers from first search to

touchdown. U.S. airlines are committed to providing the highest

quality of service, which includes clarity regarding prices,

fees and ticket terms."

In May, Biden said USDOT was writing new rules to require

airlines to compensate passengers with cash for significant

flight delays or cancellations when the carriers are

responsible. But almost a year later, USDOT has still not issued

a formal proposal.

Under the new rules, airlines will be required to tell

consumers seats are guaranteed and passengers need not pay seat

selection fees. Carriers are prohibited from advertising

promotional discounts that do not include mandatory

carrier-imposed fees.

USDOT is also requiring airlines to issue vouchers or

credits to consumers restricted from travel due to a serious

communicable disease.