Finely grate or mince the yellow onion, mince the garlic, and measure out the dry seasonings.
Line the air fryer basket with a foil sling and lightly spray with cooking spray.
In a large bowl, combine the breadcrumbs and milk. Let sit for 1-2 minutes until it forms a paste.
Add the egg, grated onion, minced garlic, Worcestershire sauce, and 2 tablespoons of ketchup to the panade. Mix until well combined.
Add the Italian seasoning, garlic powder, onion powder, salt, and pepper. Add the ground turkey and mix gently with clean hands until just combined.
Transfer the mixture to the prepared basket and shape it into a 6-7 inch long loaf, keeping it even in thickness.
In a small bowl, whisk together the ketchup, brown sugar, and Worcestershire sauce for the glaze.
Brush half of the glaze over the meatloaf and cook at 350°F (175°C) for 20 minutes.
After 20 minutes, brush the remaining glaze on the meatloaf and cook for an additional 10-15 minutes, until the internal temperature reaches 165°F (74°C).
Using the foil sling, carefully lift the meatloaf out of the basket and let it rest for 5-10 minutes before slicing and serving.