Preheat a 6-quart air fryer to 380°F for 3 minutes. Pat wings dry and toss with oil, salt and pepper.
Cook half the wings in one uncrowded layer for 12 minutes, turn and cook for 12 to 15 minutes more until crisp and at least 165°F. Transfer to a rack and repeat.
Meanwhile, simmer sugar, vinegar, 2 tablespoons water, chile and garlic in a small saucepan for 3 minutes. Mix cornstarch with remaining water and stir into the sauce; simmer for 1 minute until lightly thickened.
Remove sauce from heat and stir in lime juice. Toss hot cooked wings with a thin coating of warm sauce.
Serve immediately as 4 appetizer portions.