In a small bowl, combine warm water (110°F or 43°C), active dry yeast, and granulated sugar. Stir gently and let it sit for 5-10 minutes until frothy.

In a large bowl, whisk together gluten-free all-purpose flour, xanthan gum (if needed), and salt. Make sure all dry ingredients are evenly mixed.

Create a well in the center of the dry ingredients. Pour in the yeast mixture and olive oil. Stir until the dough is well mixed. The dough will be sticky.

Grease a loaf pan that fits inside your air fryer and line it with parchment paper for easy removal.

Transfer the dough into the prepared loaf pan. Use a wet spatula or your wet fingers to smooth the top of the dough.

Cover the loaf pan with plastic wrap or a clean kitchen towel and let it rise in a warm, draft-free place for 30-45 minutes. The dough should puff up a little but may not rise as much as traditional bread.

Preheat your air fryer to 350°F (175°C) for a few minutes before baking.

Place the loaf pan in the air fryer basket. Air fry at 350°F (175°C) for 25-30 minutes, or until the bread is golden brown and sounds hollow when tapped on the bottom.

Carefully remove the bread from the air fryer and let it cool in the loaf pan for a few minutes. Then, use the parchment paper to lift it out and transfer to a wire rack to cool completely.

Once cooled, slice the bread and enjoy it with your favorite toppings or as a side to your meal. Store leftovers in an airtight container for freshness.