Preheat the air fryer to 400℉ and prepare the air fryer basket with a light brushing of olive oil or cooking spray. If your air fryer heats up quickly, wait to turn it on until the fish is coated.
In a wide, shallow bowl whisk the egg. Set this aside.
In a separate shallow bowl, mix together the panko bread crumbs, grated coconut, lime zest and garlic powder, salt and pepper.
Using tongs or your hands, place a fillet of halibut into the whisked egg and flip it, making sure it is well covered. Then transfer this same fillet to the coconut mixture. Use your hands to flip the fillet on all sides or use a spoon to scoop the mixture onto the fish. Make sure the fish is fully coated in the coconut lime crust. Place the coated fillet on a separate plate. Repeat this until all fillets are coated.
Place the fillets in the air fryer basket and bake for 8-10 minutes or until the fish flakes easily or the internal temperature reaches at least 145°F (63°C).
Once it is cooked, allow the fish to cool for 3-5 minutes and then serve with your choice of side(s). Enjoy!