Outer space is an interesting environment that has been mentioned a few times in Avatar, though would it be a good place to watch a fight, perhaps in a future installment of in the series?
Having no gravity or air, outer space offers some challenges for fighters. Not to mention, there is no sound in space either, plus it is very cold there. Overall, a fight in space can look very different to a fight on Earth and/or another planet.
Space is a very harsh environment and usually only those with special traits or a space suit can survive in it. Could the Avatar or any other character survive in the vacuum of space or would it make more sense for them to wear space suits? Perhaps spirits could survive in space and it has been theorized that some do live there.
Other forms of media have shown fights in outer space (Invincible, Marvel, etc.) so would this be something fans would like to see in Avatar? Not saying a fight like this should take place in deep space and could still happen close to Earth, merely far enough from the planet, maybe somewhere in between Earth and the Moon.