Hi theponyboygirl,
Losing gill filaments and thus surfacing for air is normally indicative of reduced capacity for oxygen exchange. There are many causes for gill loss. We want to try find out what are the causes and rectify them.
1) Water parameter issues - If you haven't yet invest in a test kit, get a good colourimetric solution type kit to test for ammonia, nitrite, nitrate and pH. You want to aim for 0 ammonia, 0 nitrites and <60 nitrates. Ideal pH is neutral around 7. You can achieve good water parameters by regular water testing, regular 20% water changes and diligently removing uneaten food and detritus. Remember to use a good dechlorinator each time during a water change.
2) What is the water temperature like? Are there excessive currents? You want to maintain a stable 16-18 degree celsius range ideally. Axies are susceptible to high water temperature as well as fluctuating temperatures. That can stress the axie and can contribute to gill loss. Excessive currents too can stress the axie. You want to ensure that you diffuse your filter output. If your water plants are swaying, that indicates too much water currents.
3) Do you house your axie with other tankmates or fish? Aggression can lead to gills being nibbled off. It is best to house axies alone or with other axies of similar size. Some species of feeder fish are alright such as guppies, minnows and platys, provided they are quarantined for at least 30 days beforehand.
4) Ensure general safety and comfort in the tank environment. Do not use gravel, restrict to freshwater sand, pool filter sand or play pit sand or keep the tank bare bottomed. Provide at least 2 hiding places per axie.
5) Rule out diseases and illness. Do you observe any unusual growth, discolouration, mucus or discharge from your axie's skin and gills? Is it losing its appetite? Is it getting thinner? Some infections such as fungal or bacterial infections can leave your axies gills tattered and shrivelled.
6) Axolotls rarely morph. Poor water and environmental conditions would normally kill it first. You can look for the following signs of morphing if you want to be sure. Morphing axies tend to lose their appetites, develop eyelids, lose their fins and develop a pointier head and tail. They would also lose their gills and their skin texture may look different.
Cheers.