Pat chicken breasts dry with paper towels. If thicker than ¾ inch, place between plastic wrap and pound to even thickness. Season both sides with salt and pepper.
Set up three shallow dishes: (1) flour, (2) beaten eggs, and (3) panko mixed with garlic powder, onion powder, paprika, and thyme.
Dredge each chicken breast in flour, shaking off excess. Dip in egg, allowing excess to drip off. Press firmly into the seasoned panko, ensuring even coverage.
Place breaded chicken on a plate and refrigerate uncovered for 15-30 minutes (if time allows) to help the coating adhere better.
Preheat air fryer to 375°F (190°C) for 3 minutes.
Spray the air fryer basket with oil. Place chicken breasts in the basket without overcrowding. Spray the top of the chicken lightly with oil.
Air fry for 8 minutes, then flip the chicken, spray the second side with oil, and continue cooking for 7-10 minutes until golden brown and internal temperature reaches 165°F (74°C).
Transfer to a wire rack and rest for 5 minutes before serving to redistribute juices and maintain moisture.