Place the grated potatoes in a clean kitchen towel and squeeze out as much excess moisture as possible. Transfer to a large mixing bowl.
Add the grated onion to the bowl with the potatoes.
In a small bowl, beat the eggs. Add the eggs to the potato and onion mixture.
Add the flour, salt, black pepper, and baking powder to the bowl. Mix everything together until well combined.
Preheat the air fryer to 375°F (190°C) for 3 minutes.
Lightly brush or spray the air fryer basket with 1 tablespoon of vegetable oil to prevent sticking.
Form the potato mixture into 8 equal-sized patties, about 3 inches in diameter and 1/2 inch thick.
Place the latkes in a single layer in the air fryer basket, making sure they do not overlap. You may need to cook in batches.
Brush the tops of the latkes with the remaining 1 tablespoon of vegetable oil.
Cook the latkes in the air fryer at 375°F (190°C) for 7 minutes.
Carefully flip the latkes and cook for an additional 7 to 8 minutes, or until golden brown and crispy.
Remove the latkes from the air fryer and place on a paper towel-lined plate to drain any excess oil.
Serve hot with sour cream or applesauce if desired.