The phrase usually implies disapproval and criticism for showing off or behaving superior to others. Everyone disliked his airs and graces, seeing them as a sign of arrogance.
Pro Tip 2/3
Social Context
Often used to suggest someone is trying to appear socially higher than they are, or fit into elite circles. She adopted airs and graces at the gala to impress the wealthy attendees.
Pro Tip 3/3
Cultural Awareness
Understanding that this phrase might be perceived differently across cultures and may not translate literally. He didn't realize his airs and graces were seen as insincere in the local culture.