Add warm water - about 100° to a large bowl with yeast, sugar and olive oil. Stir to combine and set aside about 5 minutes.
Add 3 cups of flour with a teaspoon of kosher salt.
Stir together with a dough whisk or wooden spoon until dough forms a ball.
Turn dough out onto a floured surface. Knead for 3- 5 minutes until dough is no longer sticky, adding flour 1 tablespoon at a time if needed.
Divide dough in half. Work with half of the dough at a time.
Divide each dough half into 8 pieces.
Roll the dough into about a 18 inch rope. Dough can be rolled on the floured surface or between your hands. If dough is resistant to shape, allow it to rest a few minutes and try again.
Form the dough into a U shape.
Twist the ends twice.
Fold the ends over the round part of the dough.
In a small bowl, beat the egg with a tablespoon of water.
Brush both sides of the pretzel dough with the egg wash.
Lay the pretzels into the air fryer with space in between.
Sprinkle flake salt over the pretzels.
Cook pretzels at 370° for 6-7 minutes or until golden brown.
Remove to a wire rack to cool.
Repeat with remaining pretzels.