Preheat the air fryer to 400°F (200°C) for 5 minutes.
In a shallow bowl, combine the grated Parmesan cheese, panko breadcrumbs, garlic powder, dried Italian seasoning, salt, and black pepper. Mix well.
In another shallow bowl, whisk together the eggs and water until fully combined.
Dip each tilapia fillet into the egg mixture, allowing any excess to drip off.
Coat the fillets evenly with the Parmesan breadcrumb mixture, pressing gently to adhere the crust.
Lightly spray both sides of the coated fillets with cooking spray to help achieve a golden crust.
Place the fillets in a single layer in the air fryer basket, making sure they do not overlap. You may need to cook in batches depending on the size of your air fryer.
Air fry the tilapia fillets at 400°F (200°C) for 10 to 12 minutes, flipping halfway through, until the crust is golden brown and the fish flakes easily with a fork.
Carefully remove the fillets from the air fryer and serve immediately.