Preheat the air fryer to 390°F (200°C) for 3–5 minutes.
A hot basket helps with browning.
Prep the chicken and veggies. Slice the chicken into thin, even strips. Slice peppers and onion into similar-size pieces so everything cooks evenly.
Mix the seasoning.
In a small bowl, combine chili powder, cumin, smoked paprika, garlic powder, onion powder, oregano, red pepper flakes (if using), salt, and black pepper.
Toss with oil and spices. In a large bowl, add chicken, peppers, and onion. Drizzle with olive oil and sprinkle on the seasoning.
Toss well until everything is evenly coated and glossy.
Arrange in the air fryer. Spread the mixture in a single layer. Slight overlap is fine, but avoid piling too high.
Work in batches if needed for crisp edges.
Air fry for 10–12 minutes, shaking the basket or tossing halfway. Cook until the chicken is cooked through (internal temp 165°F/74°C) and the peppers are tender with a few charred edges.
Finish with lime. Transfer to a bowl and squeeze fresh lime over the top.
Taste and add a pinch more salt if needed.
Serve in warm tortillas with your favorite toppings.