Microwave onion in microwave-safe bowl until soft, about 1-2 minutes.
In a medium bowl, mix onions with shredded potatoes, eggs, matzo meal, salt and pepper until combined well; form into 12 pancakes. Place one layer of pancakes of lightly oiled or sprayed Air Fryer basket. (Do not overlap pancakes.)
Drizzle tops of latkes with a little olive oil. Cook at 400 F degrees for 5 minutes; flip and cook for another 5 minutes, or until crispy. Repeat with remaining latkes. Serve warm with applesauce and sour cream or plain Greek yogurt.
