I hope it keeps the $999 price point of the M1 MacBook Air, but the M2 MacBook Air could very well launch at $1099 or even $1199 to cover the more expensive MiniLED display and the new case design and internals. In that scenario, the M1 MacBook Air will almost certainly stick around at $999 to anchor that price point.
If the M2 MacBook Air does launch at $999, then I could see the M1 MacBook Air see a price drop to $799. Otherwise, we would have to wait until 2023 and the M3 MacBook Air, which should be able to return to the $999 price point and then the M2 MacBook Air can drop down to $799.