New passenger Bill of Rights hopes to ensure smoother summer travel

Book your flight and rest a bit easier that you'll be compensated for airline mismanagement.

New regulations issued by the U.S. government Wednesday to protect passengers will go into effect in August.

"It's just common sense that if an airline loses your bag or you get bumped from a flight because it was oversold, you should be reimbursed," U.S. Transportation Secretary Ray LaHood said in a statement.

Airlines will be required to refund baggage fees if luggage is lost during transit and the compensation airlines pay passengers bumped from flights will increase.

A tarmac-delay rule that was implemented last year after a 10 hour delay for passengers on an international flight leaving JFK airport in late-December has extended a maximum time limit for stranded passengers from three hours to four. Airlines would be need to pay a fee if passengers are not allowed off a stranded plane before the time limit expires.

Airlines seem to be more likely to cancel international flights in order to avoid fines of up to $27,500 for each passenger, according to airline trade groups.

Another protection includes full disclosure of all possible fees on airline websites. Taxes and government-mandated fees also need to be included in advertised fares under the new regulations.

Passengers bumped from oversold flights will be compensated between $650 or $1350 depending on how long the passenger is delayed, which raises the limits from $400 or $800.

Airlines mishandled 2 million bags, bumped 65,000 passengers from flights and 681,000 passengers gave up their seats in exchange for offers by the airline for food and lodging.