it does, but it is not as significant in normal weather conditions in the frequency ranges we're dealing with here (Likely sub 2.4 Ghz) [1], (General rule of thumb, Atmosphere absorbs everything except visible spectrum and 10 cm - 10 m wavelength), compare this to effect from the inverse square law. :)

Now this might be significant enough in directional waves with a huge constant multiplier (like a 'ideal' laser with no divergence). Someone can probably give insight on it here.

1. https://www.researchgate.net/publication/270512069_Propagati...