In a medium bowl, combine cream cheese, shredded cheddar, garlic powder, onion powder, smoked paprika, salt, pepper, and bacon until well mixed.
Spoon the cheese mixture into each jalapeño half and smooth the top.
Press each filled jalapeño into panko breadcrumbs to coat the top.
Spray the basket of the air fryer with olive oil.
Place poppers in the basket in a single layer.
Lightly spray the tops with olive oil for extra crispiness.
Air fry at 375°F (190°C) for 8–10 minutes until golden and bubbly.
Let cool slightly before serving.