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Bunkers reduce damage from air attacks. Build them when (or before!) your enemies have strong air forces.
The term "bunker" is often used to denote military bomb shelters, often those housing high officials of the military and government. As shown in the second United States-Iraq War, a country with air dominance over a foe can do significant amounts of damage to a city with just a few bombs. Military and political leaders are prime targets for such attacks; often these officials will be protected in bunkers far below city streets. Bunkers are also used to protect communications networks, another important target.
Any improvement in defense usually sparks an improvement in offensive weapons. The United States is building special "bunker-buster" bombs, designed to burrow deep into the ground before exploding. While such bombs may not destroy the deepest bunkers, they can cut off their communications, escape routes and air supply.