In the first week since the war in Iraq started, most U.S. major airlines reported that their collective traffic has fallen 5%-10% on domestic routes and it is only going to get worse because bookings, the best leading indicator, have plummeted.

The new update released yesterday by the Air Transport Association said that traffic was relatively strong the day before the Azores Summit, but when the bombing started, "airline traffic fell sharply in every region." Pacific routes were off 10%-20% and transatlantic traffic was hit the hardest down 20%-30%.

ATA also surveyed seven carriers regarding advance bookings -- typically measured for the upcoming 60-90 days -- to get a sense of where traffic may be headed. "The data [are], unfortunately, quite sobering," according to ATA CEO Jim May.

Domestic bookings are down 20%-40%, and transatlantic books are off between 30% and 100%. Pacific routes were down equal amounts, and bookings to Latin America are down 10%-25%. ATA said some airlines have had days recently when net booking changes were in excess of -100%, meaning that cancellations exceeded bookings on those days.

The latest dismal report comes after members of Congress and the White House asked for an update on how the war has hit the airlines' traffic and bookings. May reiterated that carriers "are not asking for a bailout" and instead want relief "specific to issues created by war." The airlines want an "economic cushion," he said.