In a small bowl, soak the panko breadcrumbs in the milk for about 5 minutes until the liquid is fully absorbed. This panade is the key to keeping your turkey meatloaf juicy and tender.
In a large bowl, combine the ground turkey, soaked breadcrumbs, beaten egg, onion, garlic, Worcestershire sauce, Dijon mustard, salt, pepper, smoked paprika, and parsley. Mix gently with your hands until just combined. Do not overmix or the meatloaf will become dense.
Shape the mixture into an oval loaf about 8 inches long and 4 inches wide. Make sure it will fit comfortably in your air fryer basket with a little space around all sides for air circulation.
In a small bowl, whisk together the ketchup, brown sugar, apple cider vinegar, and garlic powder to create the glaze. Set aside.
Preheat the air fryer to 350 degrees F. Place the meatloaf in the basket on a piece of parchment paper with holes or a lightly greased air fryer liner.
Cook for 30 minutes. Then carefully brush the top and sides of the meatloaf generously with the glaze.
Continue cooking for another 8 to 10 minutes until the glaze is sticky and caramelized and the internal temperature reaches 165 degrees F when checked with an instant-read thermometer.
Let the turkey meatloaf rest in the basket for 10 minutes before transferring it to a cutting board. Slice into thick pieces and serve.