Rule reminder
The condizionale passato is used in very polite contexts: Avrei preferito... (I would have preferred...), Avrei voluto chiederle... (I would have liked to ask you...), and to soften criticism: Avrebbe potuto dirlo prima (He could have said it earlier).
In a formal apology: 'Mi dispiace. ___ (potere) gestire la situazione meglio.'