The correct spelling of the phrase 'am the air' can be broken down phonetically as /æm/ /ði/ /ɛr/. The initial sound is the short 'a' sound, followed by the voiced dental fricative /ð/ and the unstressed vowel /ɪ/. The final sound is the open-mid back unrounded vowel /ɛ/ followed by the alveolar approximant /r/. To ensure the correct spelling of this phrase, it is important to pay attention to the placement and pronunciation of each individual sound.