A payload coupling apparatus is provided that includes a housing having an upper portion, a lower portion, and a side wall positioned between the upper and lower portions, an attachment point on the housing adapted for attachment to a first end of a tether, a slot in the housing that extends downwardly towards a center of the housing thereby forming a hook or lip on the lower portion of the housing beneath the slot, a plurality of holes in the upper portion of the housing; and a plurality of holes in the lower portion of the housing. A method of retracting a payload coupling apparatus during UAV flight is also provided.