DIAGNOSIS Yes, it's normal for this design. The handle is metal and is directly attached to the basket inside the 400°F air stream. It conducts heat.
FIX Always use a dry oven mitt or a silicone handle cover when removing the basket. Do not use a wet cloth, as the steam can burn you. Set the basket on a trivet or heat-resistant surface, not your countertop.
IF THAT DIDN'T WORK There is no 'fix' to make it cooler. It's a design characteristic of many basket-style air fryers. You must adapt your handling procedure.
HEADS UP Never let the hot basket handle contact plastic, paper, or anything flammable. It can cause melting or fire. Assume it is as hot as the cooking temperature.