Preheat the air fryer: Set to 390°F (200°C). Let it heat while you prep.
Slice the chicken and veggies: Cut chicken into thin strips.
Slice peppers and onion into even strips so everything cooks at the same rate.
Make the seasoning: In a large bowl, combine chili powder, cumin, smoked paprika, oregano, salt, pepper, and cayenne (if using). Add minced garlic and lime zest.
Toss with oil and lime: Add chicken, peppers, and onions to the bowl. Drizzle with olive oil and half the lime juice.
Toss until evenly coated. The mixture should look glossy but not drenched.
Arrange in the basket: Lightly spray the air fryer basket with oil. Spread the mixture in a mostly single layer.
A little overlap is fine; cook in batches if needed for best browning.
Air fry: Cook for 12–15 minutes, shaking the basket or tossing halfway. Chicken should reach 165°F in the thickest pieces and have golden edges. Peppers and onions should be tender with a bit of bite.
Warm tortillas: Wrap tortillas in foil and heat in the air fryer at 320°F for 2–3 minutes, or warm them in a dry skillet.
Finish with lime: Toss the cooked fajitas with the remaining lime juice.
Taste and adjust salt if needed.
Serve: Pile the chicken and veggies into warm tortillas. Add cilantro, avocado, pico, and a dollop of sour cream or yogurt.