German media reports that Lufthansa has banned Airtags in checked bags:
This is specifically because of the transmission function.
Lufthansa claims that the transmission function needs to be turned off during flight when in checked luggage, just as is required for cell phones, laptops, etc.
Factoring in frequencies, transmission power (and any other relevant factors), it is possible Airtags could interfere with aircraft navigation and communication systems? Given other airlines haven't banned them, it is curious why only one would choose to do so.