This paper analyzes the cost efficiency of UK airports over the period 1998-2008 using a bayesian dynamic frontier model. This model provides a more structural explanation for the variation in airports inefficiencies than has been presented by previuous models and also allows for cost inefficiency effects. On average the dynamic frontier results, estimated through a Markov Chain Monte-Carlo simulation, indicate that UK airports improved their efficiency over time. factors found to be important determinants of cost efficiency include airport size, price regulation, price cap variations and airport competition. policy implications of the result are derived.