That is correct - it does not support macro photography.Does the iPhone Air have the camera sensor from the 16e? Seems like that’s the case being it does not have macro ability like the base iPhone 16 or 17.
However, it does not have the same sensor as the 16e either. They're both 48MP, but the sensors differ in size, pixel dimensions and other areas. iPhone 16e Uses a smaller 1/2.55" sensor with 0.7µm pixels.
iPhone Air has a larger 1/1.56" sensor with 1.0µm pixels. This matches the main sensor size from the iPhone 16 and iPhone 17 models - so better light capture and higher detail, especially in low light. iPhone Air also has sensor shift optical image stabilisation, whereas 16e is lens-based (less effective).