According to many authors, a fluid is defined to be incompressible if the material derivative of the density $\frac{D\rho}{Dt}$ is zero, that is to say, that in an frame of reference following the motion of an air parcel, density doesn't change. This in turn means, according to the continuity equation,
$$\frac{D\rho}{Dt}+\rho\nabla\cdot{\vec V}= 0,$$
so that $\nabla\cdot{\vec V}= 0$. So far so good.
However, let us consider a simple case in 1D in which the density is of the form $\rho(x,t)=x-t$ and $\vec V=u_x\hat{\imath}$. Both fields satisfy the continuity equation. This is more evident if we use the other form of the continuity equation,
$$ \frac{\partial \rho}{\partial t}+\nabla\cdot{(\rho\vec V)}= 0$$
Clearly, for the velocity field that I gave, $\nabla\cdot{\vec V}= 0$, and the fluid is incompressible, but as we can see, density changes with time and space. Moreover, at a fixed position (i.e. in a stationary frame of reference), density would change with time.
So, does density depend on the frame of reference? What's the real definition of compressibility in fluid mechanics?