From AccurateShooter.com

One of our readers asked “What effect does altitude have on the flight of a bullet?” The simplistic answer is that, at higher altitudes, the air is thinner (lower density), so there is less drag on the bullet. This means that the amount of bullet drop is less at any given flight distance from the muzzle. Since the force of gravity is essentially constant on the earth’s surface (for practical purposes), the bullet’s downward acceleration doesn’t change, but a bullet launched at a higher altitude is able to fly slightly farther (in the thinner air) for every increment of downward movement. Effectively, the bullet behaves as if it has a higher ballistic coefficient.

Worth a read. More here.