Bandit is scared of being picked up and in the air. It's not the actual picking up. She accepts that it's just once she's in the air she is frozen. How do I help conquer this fear of hers?

The simple answer to that is "Don't pick her up."
No, seriously, you want her to allow you to pick her up without a problem just for those emergency times that you *have* to pick her up. It sounds like she does that.
She's a puppy and of course people want to pick up the cute puppy, that's natural. What's not natural is when she's 2 years old, 60 pounds and she thinks you should pick her up. Yeh, cuddle on the couch, that's fine and good, but I'd suggest generally leaving her feet on the floor.
Something that comes up from time to time is "Raise your dog, from a puppy, as you want the adult dog to be." Teaching a puppy is not normally a problem, untraining an older dog out of bad habits can be a real pain in the touchas.

Would you mind doing me (and maybe others) a big favour, please go fill out a bit more of your profile. I know that your dogs name is Bandit, but have no idea what yours is but that's really okay. what I'd like is to have some idea of where you are, city / state. Sometimes the answer that we give is going to depend on where you are.

Dogs are land animals. I wouldn't say being in the air is natural for them. Why does she need to be comfortable with being in the air vs being simply lifted to a spot? Huskies aren't really dogs to throw in a purse and carry around. Lol. Some could also be how you are lifting her. If you are lifting with her butt in the crook of one elbow and her chest in the other she has no real choice but to stiffen because of where the pressure is. If you are just one arm scooping around her middle then she probably doesn't feel stable.

Establishing a comfortable hold for her I think would be first, then just do short lifts with lots of praise and treats, eventually working up to your end goal.

Usually two arms underneath her. Like both arms in between her legs. Sometimes I'll hold her like a baby and she likes that a little better. I'm not saying I want to carry her everywhere but when I need to I don't want her to be afraid

TwisterII - thanks, my monitor just about got a coffee bath on that first sentence!!!!