A Midair Shell Jump is done by throwing the shell backwards and redirecting the shell forwards before Mario's throwing animation finishes. When Mario starts his throwing animation there is 1 frame before the shell is thrown. By turning around during this frame the shell is flicked underneath Mario.
Techniques
There are 3 different techniques for doing a Midair Input.
Tap
Fastreaderz
Flick
Timing
Doing the midair input at different heights lets you do different variations.
Early (Surfing Midair)
Normal
Late (Midair Shellmet)
Bump
Death / Damage Boost
Basic Variations
Cape Midair
A midair shell jump can be done as Cape Mario by doing the midair input while floating. If Mario has stored flight then he is able to start flying after the shell jump.