Allegiant Travel (ALGT) saw its stock price plummet by 5.02% during Tuesday's trading session, as investors reacted to expectations of a significant third-quarter loss. The sharp decline comes ahead of the company's scheduled earnings release after market close.

According to analysts' estimates, Allegiant Travel is projected to report a loss of $1.77 per share for the third quarter. This anticipated loss has sparked concern among investors about the airline's financial performance and near-term prospects, leading to the sell-off in the stock.

The travel industry, particularly airlines, has faced numerous challenges in recent years, including the lingering effects of the COVID-19 pandemic, rising fuel costs, and inflationary pressures. Allegiant Travel, known for its low-cost carrier model focusing on leisure travelers, may be particularly vulnerable to these headwinds.

As the market awaits the official earnings report, the stock's significant drop suggests that investors are bracing for potentially disappointing results. The company's ability to navigate the current economic environment and return to profitability will likely be key factors influencing its stock performance in the coming months.