Prep the peppers: Rinse the banana peppers.
Slice into 1/4-inch rings, then remove seeds and membranes. Pat dry with paper towels so the coating sticks.
Set up the dredging stations: In one shallow bowl, add the flour. In a second bowl, whisk the eggs until smooth.
In a third bowl, combine panko, Parmesan, garlic powder, onion powder, paprika, salt, and black pepper.
Coat the rings: Toss the pepper rings in flour, shaking off excess. Dip into the egg, letting the extra drip off. Press into the panko mixture until evenly coated.
Place coated rings on a plate.
Preheat the air fryer: Set to 375°F (190°C) for 3 minutes. This helps the coating crisp right away.
Arrange and spray: Lightly spray the air fryer basket with oil. Place rings in a single layer without crowding.
Mist the tops of the rings with oil to encourage browning.
Air fry: Cook at 375°F (190°C) for 6–8 minutes, flipping halfway and spraying again if needed. They should be golden and crisp.
Season and serve: Sprinkle with a pinch of salt while hot. Squeeze a little lemon over the top if you like.
Serve with your favorite dips.
Work in batches: Repeat with remaining rings. Keep cooked batches warm in a low oven if needed.