Eligible passengers will continue to have access to the British Airways and American Airlines lounges for the time being, with plans for the new lounge set to start this September.

Due for completion by early 2017, the split-level premium lounge will have a capacity for around 230 people, with views over the airfield.

Qantas Group chief executive Alan Joyce said the “time was right for fresh investment in the national carrier’s presence”.

The airline has just reported strong half-year results, with underlying profits of $921 million before tax – a record for the airline.

“The Kangaroo Route is at the heart of Qantas’ identity and London remains one of our most important destinations,” Joyce said. “We want the first dedicated Qantas lounge at Heathrow to be something special.”

The dedicated facility at Heathrow will include a Rockpool menu and dining experience, full-service bar with Rockpool cocktails, showers, business facilities and a children’s zone.

“We’re very proud of the lounges we’ve launched over the past three years in Singapore, Hong Kong, Los Angeles and Perth - with Brisbane to follow this year - and we’re excited to be bringing this successful formula to our customers in London,” Joyce said.

Passengers eligible to use the lounge will include Qantas Club members; Qantas Business and First Class passengers; Platinum One, Platinum and Gold members of the Qantas Frequent Flyer program; and passengers travelling in tiered cabins on partner airlines with a QF code.

Joyce said the airline’s record profits were allowing “for new investment in services” with Qantas also looking to launch free Wi-Fi inflight on its domestic fleet with ViaSat.

In-flight trials are expected to begin later this year with a retrofitted Boeing 737, followed by a full roll-out across the domestic fleet of A330s and B737s early 2017. There are no current plans to offer the free Wi-Fi service on international flights however.