Yes, axe is a Scrabble word!
...and is worth 10 points in Scrabble, and 10 points in Words with Friends
axe
Verb
1. Chop or split with an ax
2. Terminate
Noun
1. An edge tool with a heavy bladed head mounted across a handle
What Scrabble words can I make with the letters in axe?
2 Letter Words