How do I transfer all settings and apps from my old MacBook Air to a new one?

Two built-in methods provided:

Time Machine - if you have an external hard drive, this is a good option. See Back up your Mac with Time Machine - Apple Support for more information.

Migration Assistant - this uses a peer connection between both Macs. See Transfer to a new Mac with Migration Assistant - Apple Support for more information.

Also keep in mind that your old and new Macs use different architectures - the old one uses an Intel processor while the new one uses an Apple M-series chip (Apple Silicon). While everything will transfer using one of the above methods, it would be a good idea to double check if the apps you rely on are compatible with Apple Silicon. Here is one unofficial database of apps that you can use to check: https://isapplesiliconready.com/. Some apps not natively designed for Apple Silicon may be able to run using Rosetta 2 - see If you need to install Rosetta on Mac - Apple Support for more information.

+1 👍🏽